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Corporate Service - China

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Q&A Regarding New Company Law of 2024 (4)

Answer
Q:
Must a company sign a labor contract with its employees?
A:
The company shall protect the legitimate rights and interests of the employees, sign labor contracts with the employees in accordance with the law, participate in social insurance, strengthen labor protection, and achieve safe production.

Q:
Does the company need to organize a trade union?
A:
The employees of the company shall organize a trade union in accordance with the Trade Union Law of the People's Republic of China, carry out trade union activities, and safeguard the legitimate rights and interests of the employees. The company shall provide necessary conditions for the activities of its trade union.

Q:
Can the company's shareholders' meeting use video conference?
A:
The shareholders' meeting, the board of directors and the board of supervisors may hold meetings and vote by electronic communication, except as otherwise provided in the articles of association of the company.

Q:
Under what circumstances are the resolutions of the company's shareholders' meeting and board of directors not established?
A: Under any of the following circumstances, the resolution of the shareholders' meeting or the board of directors of the Company shall not be established:
  1. Failing to hold a meeting of shareholders or the board of directors to make a resolution;
  2. The shareholders' meeting or the board of directors fails to vote on the resolution matters;
  3. The number of people present or the number of voting rights held at the meeting does not reach the number of people or the number of voting rights held as stipulated in the Company Law or the articles of association;
  4. The number of people or the number of voting rights held who agree to the resolution matters does not reach the number of people or the number of voting rights held stipulated in the Company Law or the articles of association.

Q:
What is the impact of the resolution of the company's shareholders' meeting and the board of directors not being established?
A: Where a resolution of the company's shareholders' meeting or the board of directors is declared invalid, revoked or confirmed to not be established by the People's Court, the company shall apply to the company registration authority for cancellation of the registration that has been completed according to the resolution.

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