Legislation roundup: Market access negative list, company law and government procurement
April 14, 2016 | BY
Katherine Jo &clp articles &The NDRC and MOFCOM have issued a draft negative list for market access in four pilot regions, the SPC has cracked down on abuse of profit distributions and the MOF has set clearer standards for government procurement bidding procedures
Economic Policy
National Development and Reform Commission and Ministry of Commerce, Draft Negative List for Market Access (Trial Version)
The Draft contains a total of 328 items, including 96 in the prohibited access category and 232 in the restricted access category. Where the State Council formulates new provisions in respect of the industries, sectors and businesses that market entities are prohibited or restricted from investing and operating in, the most recent provisions will prevail.
A plan for trial implementation of the negative list system for market access proposed by a provincial-level people's government of a pilot region will be implemented after it is submitted to, and approved by, the State Council.
See the digest for more details.
Further reading
Company Law
Supreme People's Court, Provisions on Several Issues Concerning the Application of the <PRC Company Law> (4) (Draft for Comments)
According to the Draft, a resolution of the shareholders' meeting or shareholders' general meeting, or of the board of directors shall be found to be invalid if the resolution makes an excessive distribution of profits or is for a material improper affiliated transaction, causing harm to the interests of the company's creditors.
See the digest for more details.
Further reading
Government Procurement
Ministry of Finance, Measures for the Administration of the Invitation for and Submission of Bids for the Government Procurement of Goods and Services (Draft for Comments)
As proposed by the Draft, a purchaser may, based on the price calculation, set a ceiling price within the procurement budget limit, but may not set a price floor. Also, after the bid deadline, a bidder may not withdraw its bid documents during the bid validity period.
See the digest for more details.
Further reading
Economic Policy
National Development and Reform Commission and Ministry of Commerce, Draft Negative List for Market Access (Trial Version)
The Draft contains a total of 328 items, including 96 in the prohibited access category and 232 in the restricted access category. Where the State Council formulates new provisions in respect of the industries, sectors and businesses that market entities are prohibited or restricted from investing and operating in, the most recent provisions will prevail.
A plan for trial implementation of the negative list system for market access proposed by a provincial-level people's government of a pilot region will be implemented after it is submitted to, and approved by, the State Council.
See the digest for more details.
Further reading
Company Law
Supreme People's Court, Provisions on Several Issues Concerning the Application of the <PRC Company Law> (4) (Draft for Comments)
According to the Draft, a resolution of the shareholders' meeting or shareholders' general meeting, or of the board of directors shall be found to be invalid if the resolution makes an excessive distribution of profits or is for a material improper affiliated transaction, causing harm to the interests of the company's creditors.
See the digest for more details.
Further reading
Government Procurement
Ministry of Finance, Measures for the Administration of the Invitation for and Submission of Bids for the Government Procurement of Goods and Services (Draft for Comments)
As proposed by the Draft, a purchaser may, based on the price calculation, set a ceiling price within the procurement budget limit, but may not set a price floor. Also, after the bid deadline, a bidder may not withdraw its bid documents during the bid validity period.
See the digest for more details.
Further reading
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