Seminar

266 articles with far-reaching changes in many areas come into force in July 2024 and require adaptions regarding organizational forms, structures and more for foreign companies. Join our hybrid session with Sebasian Wiendieck, lawyer and partner of Rödl & Partner China. The seminar navigates you through the revised China Companies Act and supports you to find out what steps are necessary to meet the implementation date 31 December 2024.

The revised Companies Act includes, among other things:

– Revised capitalization rules, including a 5-year deadline for capital contributions and transitional rules for existing companies; publication of registered and actually paid-up capital, internal audit requirement for paid-in capital and legal consequences for late payment; right of third party creditors to demand earlier payment of capital; use of reserves to cover losses, business expansion or capital increase;

– Changed internal structure, including an optional “audit committee” on the Management Board; possible structure of companies without a supervisory board/supervisor;

– Mandatory participation of employee representatives, including in the management board of companies with more than 300 employees; and e.g. during corporate restructuring;

– Revised rules for share transfers, including waiver of pre-emption rights; enforcement of share transfers; liability of the acquirer; right of shareholders to require the company to purchase their shares in certain cases;

– Liability of legal representatives, directors, officers, controlling shareholders; in relation to related transactions; during the incorporation process; in relation to the unlawful distribution of profits;

– Formalities, e.g.: Resignation of the legal representative, electronic committee decisions, invalidity of shareholder/supervisory board resolutions, mandatory extension of the term of office of directors/supervisory board members, process of reduction of share capital, liquidation process.