In Depth: China Overhauls Company Law

China’s top lawmakers have passed sweeping changes to the country’s Company Law that will significantly shorten the time investors have to pay registered capital contributions, while increasing the liability of company management for unpaid commitments and harmful practices by shareholders.

Some have hailed the new rules as a positive move that will better protect the rights of investors and creditors. However, the changes have also sparked concerns among legal experts that they could dampen entrepreneurial fervor and lead to mass of business closures.