China business series: directors and supervisors
By Woon-Wah Siu and Julian Zou
Every Chinese company, including subsidiaries established in China by foreign companies, is required to have a board of directors and a board of supervisors. Multinationals should understand the responsibilities and liabilities of directors and supervisors of their PRC subsidiaries.
This advisory is one in a series prepared by Pillsbury’s China practice on questions frequently asked by clients doing business in China. Here, Pillsbury summarises current PRC laws relating to the board of directors and the board of supervisors of foreign-invested companies, including the responsibilities and potential liabilities of directors and supervisors. Unless otherwise specified or as otherwise indicated by the context, the word ‘company’ refers to a foreign-invested company in China, rather than its offshore parent company.
By law, every company in China must have a board of directors and a board of supervisors. A small-scale company may satisfy this requirement by having one executive director and one or two supervisors. What constitutes a ‘small-scale company’ is not clear, but in practice a company with no more than two shareholders can be considered a small-scale company. That means a wholly owned PRC subsidiary will qualify as a small-scale company in China…
If you are registered and logged in to the site, click on the link below to read the rest of the Pillsbury briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.