Regulation of Corporate Groups in China

German and Asian Perspectives on Company Law - Law and Policy Perspectives, Edited by Holger Fleischer, Hideki Kanda, Kon Sik Kim and Peter Mülbert, ISBN 978-3-16-155026-3

33 Pages Posted: 22 Dec 2016 Last revised: 4 Jan 2017

See all articles by Junhai Liu

Junhai Liu

Renmin University of China - Law School,

Date Written: January 01, 2016

Abstract

This paper has examined the regulatory framework of corporate groups doing business in China. It is clear that although China has not codified corporate groups in a separate chapter or statute, corporate groups are still protected and regulated by different legal branches, including but not confined to company law, securities law, anti-trust tax law and environmental law. The fiduciary duty of the parent company, the protection of minority shareholders and public investors of the subsidiary, the protection of creditors of the subsidiary, and the strengthening of corporate social responsibility in the subsidiary and the corporate group as a whole will continue to be significant issues in the future. Globalization represents both challenges and opportunities for China to further reform its regulatory framework of corporate groups based on best practice in Germany and other jurisdictions. The goals of legal reform of corporate groups in this regard is to enable Chinese corporate groups to be strong and globalized, to encourage foreign corporate groups to enter the Chinese market, and to promote an inclusive and sustainable win-win business ecology between and among corporate groups and all relevant stakeholders.

Suggested Citation

Liu, Junhai, Regulation of Corporate Groups in China (January 01, 2016). German and Asian Perspectives on Company Law - Law and Policy Perspectives, Edited by Holger Fleischer, Hideki Kanda, Kon Sik Kim and Peter Mülbert, ISBN 978-3-16-155026-3 , Available at SSRN: https://ssrn.com/abstract=2888322

Junhai Liu (Contact Author)

Renmin University of China - Law School, ( email )

59 Zhongguancun Ave.,
Haidian District
Beijing, 100872
China
86-139 1093 6920 (Phone)

HOME PAGE: http://www.law.ruc.edu.cn/eng/show.asp?No=192

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