Employees’ Participation in Corporate Governance under the Revised Chinese Company Law
www.taylorwessing.com

This law affects all companies in the country, regardless of size. It will be effective in July 1st 2024, and there are 3 key points are:

  1. There is a new organ present in each company called the Employee Assembly. This organ is for employees to exercise their power of democratic governance of the company. There are two types, one is an assembly for all employees or an assembly for employee representatives. In general, companies with more than 100 employees will have an assembly for employee representatives, while less than 100 will have an assembly for all employees. The number of employee representatives must not be less than 5% of the total number of employees and also not be less than 30, while the number of managers and executives must not be greater than 20% the number of representatives. The trade union acts as the executive organ of the Employee Assembly.
  2. The Employee Assembly has access to basically all the information a company stores, which can be used to affect the worker benefits of employees. It also seeks to make sure the company is always following the labor laws present at the local and national level. When a company considers dissolution or applying for bankruptcy, it is required to listen to the opinions of its trade union and employees through the Employee Assembly or by other forms.
  3. All companies with at least 300 employees must have employee representatives at the board of directors, unless it already has a board of supervisors with employee supervisors elected by the Employee Assembly in it.
  • MaoShanDong [none/use name]@hexbear.netEnglish
    48·
    8 months ago

    I actually read a bit of the update on xinhua in Chinese. This amendment to the 公司法 also seems to include increased financial and legal responsibilities on upper management like ceos and shareholders. For example they’re now even more liable in instances of fraud or mismanagement. Overall some pretty good changes that probably come off the back of the issues we saw with many of the big construction companies and so on.

    Edit: https://www.zhonglun.com/research/articles/52526.html Here’s a chinese language article I found that seems to summarize alot of the main changes. Translation software seems to do pretty well as well if you’re curious about all the amendments that were made

    • DragonBallZinn [he/him]@hexbear.netEnglish
      10·
      8 months ago

      For example they’re now even more liable in instances of fraud or mismanagement.

      MFW managers are so unnecessary, so much of a drain on society they need the threat of the law to actually attempt to do their job somewhat decently.