Fiduciary Duties and Liabilities of Corporate Directors and Officers under Chinese Company Law
By Ron Cai, Yuping Wang and Kevin Moore
For subsidiaries of U.S. companies in the People's Republic of China (PRC), the fiduciary duties and liabilities of corporate directors and officers arise not only under the extraterritorial effect of U.S. law, but are also addressed substantially by Chinese law. This advisory focuses on the fiduciary duties and liabilities, under PRC law, of directors and officers of companies operating in China. We will address three key areas and offer additional information as follows:
- Definition of corporate directors and officers
- Statutory duties of corporate directors and officers
- Legal liability
- Observations
