I am the director of a foreign company with several China operations. With the tort liability law coming into effect next month (July) and recent headlines about corruption, I am concerned about senior personnel liability if any problems arise involving my company. I'm not too certain on PRC laws governing director, supervisor and officer liability.

To what degree could I be held responsible and how do I protect myself?

The domestic perspective

Under the current PRC legal regime, directors and senior management personnel of a China-registered foreign invested company may face two layers of liabilities: one is the civil liabilities under the General Principles of PRC Civil Law and the PRC Company Law; the other is the criminal liabilities imposed by the PRC Criminal Law.