China will implement a new PRC company law and veteran lawyer Mark Schaub expects most people will doze off before they make it to the end of that law. In his China Chit-Chat website, he summarizes the main changes and insists you should pay attention. He covers important issues like: “The new PRC Company Law sets a 5-year deadline to make promised capital contributions. Crucially this requirement will apply retrospectively. Ouch!” And who is the boss in a company, and how to fire a director.
Mark Schaub:
Being an external director of a WFOE was always quite a lark. You would go to board meetings (often in Hainan), were treated with great respect and as someone external to daily operations you did not really know why you were there, so you did not need to concentrate. Sometimes you would daydream about what superpowers it would be good to have.
Sadly, these halcyon days of daydreaming about being a superhero are consigned to the past as the PRC Company law ramps up (again) personal liability for directors. The threat of personal bankruptcy somewhat outweighs the pleasure of an occasional Gin and Tonic at a board meeting where all you need to do is nod and ask the occasional question to show you are awake even if such questions showed you to be not very well informed.
Much more at the China Chit-chat.
Mark Schaub is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
Are you looking for more experts in dealing with your China risks? Do check out this list.
No comments:
Post a Comment