BritCham Shanghai hosted a seminar to introduce the New PRC Company Law and its impact on foreign-invested companies

On the afternoon of 12 Sep, BritCham Shanghai’s Legal and Regulatory hosted an insightful event on the New PRC Company Law. The gathering commenced with a warm introduction and welcome remarks from Dr Adolf Peter, Professor of Shanghai University of Political Law and Science, and Co-Chair of BritCham Shanghai Legal & Regulatory Committee

Ms Jeanette Yu, Partner and Head of Employment & Pensions of CMS China, and Mr Michael Munzinger, Counsel of Corporate, M&A, and Commercial of CMS China, delivered the keynote presentation titled “Updates on PRC Corporate Governance and Employee Representation – What Companies Need to Do”. They provided a comparative analysis between the 2024 Company Law and the 2018 version, focusing on the roles of Employee Directors and Employee Supervisors within a company. Key topics included eligibility, election processes, and the termination and by-election of Employee Directors and Supervisors.

The subsequent panel discussion was moderated by Mr Bingguang Yu, Senior Partner of AllBright, and featured an expert panel: Mr Yisheng Liu, Managing Partner of TsingLaw Partners; Ms Aurora Zhang, Contractual Partner of LLINKS Law Offices; Dr Ulrike Glueck, Managing Partner and Head of Corporate Practice Area Group and TMC Sector Group of CMS China; and Ms Jenny Shi, Chief Legal Counsel of APAC of Envista Group.

The panel covered a wide range of critical issues, including:

1. Management’s new risks and remedies under the new PRC Company Law.
2. Shareholders’ enhanced rights and actions against management.
3. The impact of the new law on investors’ redemption rights.
4. New capital contribution requirements.
5. The relevance and impact of Article 20 of the 2024 Company Law.
6. Whether employee representatives should serve on the Board of Directors or the Supervisory Board.
7. Changes regarding the use of statutory reserves under the 2024 Company Law.
8. The implementation of employee representatives in governance structures.
9. The potential need for companies to acquire liability insurance for directors, supervisors, and senior management.

The event concluded with a dynamic Q&A session, where panellists addressed audience questions. This lively exchange facilitated active participation from both the panel and attendees, contributing to an engaging and informative event.

We extend our thanks to all speakers, panellists, and attendees for their active participation and insightful contributions.