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Navigating international trade and tariffs
Recent tariffs and other trade measures have transformed the international trade landscape, impacting almost every sector, region and business worldwide.
Global | Publication | July 2024
On 29 December 2023, China unveiled its new Company Law (the New Company Law) following a fourth review and deliberation by the Standing Committee of the National People’s Congress, China’s legislative body. The New Company Law came into force on 1 July 2024. Please refer to our previous article (Previous Article) China releases its newly revised Company Law | France | Global law firm | Norton Rose Fulbright for an overview of the New Company Law.
As discussed in our Previous Article, the New Company Law imposes a greater level of duties and liabilities on directors. It is generally expected that under the New Company Law directors of companies in China would face more challenges and potential risks in performing their duties. We set out in this article a high-level overview of directors’ duties and liabilities of limited liability companies (being the most popular type of investment vehicle used by foreign investors in China) under the New Company Law.
Under the New Company Law, being a very passive director in a Chinese company will be exposed to higher risks of being held to bear personal liabilities if he/she does not perform the Fiduciary Duties properly. The New Company Law allows companies to take out insurance to cover the potential liabilities that the directors may incur in preforming their duties. Foreign investors should carefully consider the competence and appropriateness of the candidates who will serve the role as a director of a Chinese company and ensure a good understanding of the scope of their duties and the potential liabilities under the New Company Law.
Publication
Recent tariffs and other trade measures have transformed the international trade landscape, impacting almost every sector, region and business worldwide.
Publication
In mid-March 2025, Cognia Law and Norton Rose Fulbright’s Legal Operations Consulting team co-hosted a second roundtable event that brought together senior leaders, including GCs, COO and head of legal operations, from across the legal industry to discuss how to drive meaningful change within the legal ecosystem.
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