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Dezan Shira & Associates Explores Impact of China’s New Company Law on Financial and Corporate Management in Collaboration with CPA Australia in Shanghai

On Thursday, June 6, Allan Xu, Partner, Business Advisory Services, and Lee Ding, Manager, Corporate Accounting Services, shared important updates on China’s New Company Law, focusing on the legal and financial impacts of the revision. These changes are expected to affect financial and accounting managers, as well as corporate decision-makers.

The seminar, exclusively for CPA Australia members, was held at their Shanghai office and conducted in Chinese. Titled “Corporate Risk Control Strategies and Practices in China’s 2024 Legal Environment,” the event drew a full house and engaged the audience with its valuable insights.

Key topics addressed by Dezan Shira & Associates included changes to shareholders’ rights and responsibilities, revisions in the roles of directors, supervisors, and executives, and the opportunities and challenges facing shareholders and executives. The discussion also covered the impacts to paid-in capital, accelerated capital contribution, defects in capital contribution, and the responsibilities and obligations of financial personnel. A case study on capital reduction was also presented.

Summarizing the key takeaways for foreign-invested companies, Allan Xu remarked, “With the sixth revision of China’s Company Law taking effect on July 1, 2024, foreign investors are encouraged to familiarize themselves with the law. It would be beneficial to review current internal company procedures and documentation, assess risks, make necessary adjustments, and provide in-house training for shareholders, directors, and supervisors where necessary. Additionally, for any unclear information, it is important to closely monitor subsequent developments.”

Thankful for the opportunity to collaborate with CPA Australia on producing this informative event, Lee Ding remarked: “We are pleased to have been invited as speakers to showcase Dezan Shira & Associates’ insights and experiences to professional audiences, fostering inspirational discussions and building connections for mutual growth in the future.”

About Dezan Shira & Associates Business Advisory Service Capabilities

With decades of on-the-ground cross-border business services experience, Dezan Shira & Associates possesses extensive expertise in guiding foreign investors through China and Asia’s business and regulatory landscapes. We address specific issues and projects, collaborating within multidisciplinary advisory task forces and leveraging our in-house tax, audit, HR, and technology teams. This comprehensive approach enables us to swiftly and effectively meet the diverse needs of our clients throughout the lifecycle of their business projects.

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