City Research Online

Abstract

The mainstream shareholder primacy model has come under increasing scrutiny in recent decades, particularly in light of climate change and other pressing global crises, with companies now expected to address the interests of a wider range of stakeholders. Stakeholder governance has thus emerged as a promising alternative framework. While many jurisdictions are exploring pathways to advance more stakeholder-oriented governance models, China — the world’s second-largest economy and a rising global superpower — presents a noteworthy example driven by the recent amendments to its Company Law. This paper critically examines newly introduced stakeholder-oriented provisions in Chinese Company Law, including the mandated full consideration of stakeholder interests, enhanced employee engagement requirements such as the implementation of workforce directors in decision-making and adjustments to shareholders’ rights and directors’ duties. The paper analyses whether, and to what extent, these reforms represent a shift away from the shareholder primacy model as it was traditionally dominant in China. The paper makes two further contributions: first, it explores potential pathways for future reform to strengthen stakeholder-oriented governance in China; and second, it highlights some lessons that can be learned to operationalise stakeholder governance.

Publication Type:	Article
Additional Information:	This is an Accepted Manuscript of an article to be published by Taylor & Francis in Journal of Corporate Law Studies, available at: www.tandfonline.com/journals/RCLS
Publisher Keywords:	China, employee engagement, new Company Law, shareholder primacy, stakeholder governance, stakeholderism, workforce director
Subjects:	J Political Science > JX International law K Law > K Law (General)
Departments:	The City Law School The City Law School > Academic Programmes
SWORD Depositor:	Symplectic Administrator

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