Welcome to our new ADVANT Beiten edition on certain questions and answers on what PRC-registered enterprises and their shareholders must consider to be compliant with the provisions of the revised PRC Company Law! With this publication, we aim to provide you with essential information about this topic. We do this intentionally in a way which seeks to draw your attention to some important issues regarding the changes being triggered by the revised PRC Company Law. Thus, please read this publication to get a first understanding on what aspects to pay attention to in order to become/remain compliant with your PRC-registered enterprises under the revised PRC Company Law provisions and for any specific questions, please contact us anytime! Unless expressly stated otherwise, this publication only refers to privately invested limited liability companies (i.e. not to State-owned companies and not to joint stock companies).

The PRC’s top legislature, the 14th NPC Standing Committee (NPCSC) had convened for its 7th session from 25 to 29 December 2023. During such session a revised version of the PRC Company Law underwent its fourth reading, and the thus revised law was passed and will enter into effect on 1 July 2024. Long term shareholders in the People’s Republic of China (PRC) are well aware that the legal and business environment is constantly evolving and changing. The PRC Company Law dates back to 1993 when the PRC started opening up with a view to developing a market economy. It has changed several times since then and has now changed once more.