Trust Investment Companies - A Vehicle for a Corporate Restructuring in China
February 28, 2001 | BY
clpstaff &clp articlesOn January 10 2001, the People's Bank of China issued the Administration of Trust and Investment Corporations Procedures. These measures help to lay the…
On January 10 2001, the People's Bank of China issued the Administration of Trust and Investment Corporations Procedures. These measures help to lay the foundation for the creation of investment funds, which will play a key role in restructuring and privatising State-owned enterprises (SOEs) in China.
BACKGROUND
Since 1992, China has been progressively restructuring SOEs into limited liability companies and joint stock companies. The legislative framework for this revolutionary transformation began with the PRC Share System Experimental Enterprises Procedures, the Joint Stock Companies Standardisation Opinion and the Standards for Limited Liability Companies Opinion (each issued May 15 1992 by the now defunct State Commission for Economic Restructuring), and passage of the PRC Company Law (中华人民共和国公司法) in 1993.
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