1.3.1.1.3 China

As we all know, China is a fast-developing country. As its capital market grows steadily, business activities become more and more complex and sophisticated. Consequently, the Company Law 1993 was no longer able to provide satisfactory rules and regulatory support. Requirements for a more enabling, flexible and effective company law became increasingly pressing. The Chinese legislature, therefore, after having taken stock of the defects of the old company law, and having consulted the theories and experiences from other jurisdictions, has reformed the company law, including the area of remedies for minority shareholder protection.

Both exit remedies examined in this book are new in China. In this comparative study, not only the relevant exit remedies in the UK and US will be studied and compared, but the situation of these remedies in Chinese company law will also be presented, examined, and further improved. The vehicles for foreign investment and the features of foreign investment enterprises will be introduced as well, because they are a special subgroup of close companies in China, and exit remedies are also quite meaningful to shareholders in these companies.1 Legal solutions and experiences from outside help China to improve its shareholder protection and optimize its investment climate. Outside China, knowledge of Chinese company law will be of immense value to company lawyers worldwide and to those wishing to invest in China to harness its vast potential in the near future. Comparative research of such a topic will create a win-win situation. The examination of the exit remedies in the new Chinese company law is of both academie and practical importance.