5.2.2.3 Summary

As we can see, the Company Law 2006 has made great efforts in terras of protection of shareholder 's rights and interests. They are mainly reflected in four aspects: restrictions on controlling shareholders' excises of power, stricter duties for directors and senior officials, stronger shareholders' rights and several newly introduced remedies for minority shareholders, such as the appraisal remedy, derivative action and judicial dissolution. Admittedly, the new company law will encounter quite a few problems in practice, resulting from the general wording and lack of details on some issues, but many blank areas have been filled and the system of minority shareholder protection is becoming complete. Moreover, the law will keep on reflecting, improving, and gaining valuable experiences from other jurisdictions based on the current framework. I therefore think the recent company law reform represents significant and praiseworthy progress. The legal environment for business in China will be improved step by step.