Spring is in full swing and April is fragrant. On the afternoon of April 9, 2024, the Spring Salon on "The Core Impact of the New Company Law on Investors and Countermeasures" hosted by Hiways Yongtai Financial Business Committee was successfully held in Shanghai Head Office. The Company Law of the People's Republic of China (2023 Revision) (the "New Company Law") will come into force on July 1, 2024, and the new Company Law will have many impacts on the rights and interests of investors in investment and financing transactions. More than 20 guests from different industries such as Yuanxing Capital, Gimpo Investment, Shanghai Sitong Private Equity Fund Management Co., Ltd., and Guolong Private Equity Fund Management (Shanghai) Co., Ltd. participated in the sharing session on-site or online.
The sharing session was hosted by Mr. Cai Zongxiu, Secretary General of Hiways Financial Business Committee and Senior Partner (Limited Interest) of Hiways Youngtime, and Mr. Feng Jiaqing, Founding Partner of Hiways and Chairman of the National Coordination Management Committee, delivered an opening speech.
"Enterprise rule of law, system first"
In his opening speech, lawyer Feng Jiaqing said that the new Company Law is an important guarantee for maintaining the order of the market economy, and whether the company's behavior is standardized or not directly affects the stability of the market economic order. The amendment of the Company Law will have a positive impact on further establishing the legal status of the company and clarifying the legal rights and obligations.
Subsequently, Mr. Cai Zongxiu, Secretary General of Hiways Financial Business Committee and Senior Partner, gave a special lecture, and Mr. Cai Zongxiu started from the focus of investors' concerns, and through the comparative interpretation of the old and new laws, he made a professional interpretation of the liability limits of investors as directors or supervisors of the company, the adjustment of the special priority rights of investors and shareholders, and the impact of investors' capital withdrawal, and put forward countermeasures.
Ms. Cai Zongxiu also focused on the limitations of liability of investors as directors or supervisors of the company, such as the duty of loyalty and diligence, the obligation of capital adequacy, the approval of related party transactions, and the liquidation obligation of directors, and deeply interpreted the adjustment of the special preferential rights of investors and shareholders, such as the right of preferential liquidation, the right of preemptive subscription, and the right to know of shareholders, and put forward practical suggestions for investors to withdraw their capital based on practical experience.
Finally, Zhang Cheng, founding partner of Hiways Yongtai and director of the Financial Commission, concluded his remarks, saying that the new "Company Law" regulates the organization and behavior of the company, strengthens the protection of the legitimate rights and interests of the company, shareholders and other market entities, and stipulates the company's capital reduction and simple cancellation, which provides an important institutional guarantee for all kinds of entities to participate in market competition fairly.
In the theme exchange session, all parties had a heated discussion, and the guests had an in-depth discussion with lawyer Zhang Cheng and lawyer Cai Zongxiu from the perspective of their own business management.
This spring salon provided effective guidance for relevant entities to better understand the new "Company Law" and make corresponding adjustments, which was well received by the guests. The participants were promoted in the sharing and exchange, and took a group photo at the end of the event. A special tea break was also held at the event site, which provided a scene for the guests to get to know each other and interact with each other, creating a feast integrating knowledge sharing, in-depth interpretation and practical discussion. (Hai Chinese)
Editor: Qin Zheng