Corporate Governance in China 2016

The Corporate team at CMS, China worked with Getting the Deal Through again this year and published an updated analysis in key areas of corporate governance issues affecting foreign investors in China. The report consists of an updates and trends analysis and answers to a group of pre-set questions covering areas such as sources of corporate governance rules and practices, the rights and equitable treatment of shareholders, corporate control, the responsibilities of the board and disclosure and transparency.

Update and trends

On 19 January 2015, the Ministry of Commerce published the draft version of the PRC Foreign Investment Law for public comments. If adopted, foreign investment vehicles in the form of wholly foreign-owned enterprises, Sino-foreign equity joint ventures and Sino-foreign cooperative joint ventures will cease to exist. Accordingly, the corporate governance of such vehicles will be changed. For example, for a Sino-foreign equity joint venture, its highest authority will be changed from its board of directors to the shareholders’ meeting so as to be consistent with the relevant provisions under the PRC Company Law.

Please download the PDF to read the full report.