5.2.2.0 Introduction

In Chapter 2, four major improvements of the Company Law 2006 were explained, namely the lowered threshold for setting up a company, more default rules, improved corporate governance, and strengthened minority shareholder protection. In this subsection, I elaborate upon the last category. The elaboration is divided into two groups, ex-ante mechanisms and ex-post remedies.

On the one hand, ex ante protection can be achieved by imposing more duties and restrictions on the controlling shareholders and directors, and, on the other, by strengthening the minority shareholders' role in management. But no matter how rigorous the rights conferred on the shareholders are, without proper remedies, minority shareholders are still lelt powerless. In addition to the introduction of ex-ante mechanisms in the new company law, therefore, the ex-post remedies will be briefly introduced as well. The purpose is to give the readers a general view of the current situation of minority protection in China as well as the position and significance of exit remedies within the structure.