CHINA'S first Company Law was adopted by the National People's Congress on December 29 last year and will become effective from July 1 this year.
Law firm Freshfields has translated the full text of the legislation, into English.
Today, China Business Review begins an insight into the legislation and what it will mean to territory and international individuals and businesses seeking to join the surge of business investment in China. Part Two of this key translation will be published next month.
The Company Law represents a major move towards standardisation of corporate forms in China but in the short term it leaves many questions unanswered, as is pointed out by Stuart Velantine of Clifford Chance in his commentary on the law.
Only two types of business entities are governed by the new law. These are known as ''limited liability companies'' and ''companies limited by shares''.
The new law will not apply to many existing Chinese business entities, unless they are converted into one of the two corporate forms covered by the new law.