Chinese Company Law Amendment: Impact on PE and VC Investment

A Practice Note discussing the key issues arising from the revised Company Law of the People's Republic of China (PRC) that are particular to private equity (PE) and venture capital (VC) investors in their equity investments in China businesses. Among other changes, the Note highlights multiple share classes for companies limited by shares (CLSs, also known as a joint-stock company), shareholders' redemption rights, stricter capital adequacy requirements, and heightened fiduciary duties of directors. The Note also suggests compliance guidance for PE and VC investors to consider in light of the changes of the law.

Reproduced from Practical Law with the permission of the publishers. For further information, visit practicallaw.com.