Company law 5 – Fiduciary Duties of Directors under the Revised Company Law of the PRC

Week 5 Hand-in Assignment In her 2006 article ?Fiduciary Duty without Equity: Fiduciary Duties of Directors under the Revised Company Law of the PRC?, Rebecca Lee discusses: the introduction of a new concept of fiduciary loyalty of directors under the revised Law. Whereas the fiduciary doctrine has its roots in English equity, the Chinese civilian legal tradition knows no duality of law and equity. Without the concomitant incorporation of the English equity jurisprudence, the revised Chinese Company Law has not fully embraced the fiduciary doctrine, This Article therefore evaluates the feasibility of transplanting an equitable concept to a civil law jurisdiction, and the pitfalls that may be encountered. [p. 899] Lee goes on to suggest some steps that could be taken to redress the resulting gap she perceives in that legal environment. Note: See R. Lee ?Fiduciary Duty without Equity: Fiduciary Duties of Directors under the Revised Company Law of the PRC? (2006) 47 Virginia Journal of International Law 897, at 925. – What is the legal approach to fiduciary duties in the People?s Republic of China? – In what ways is this approach similar to the approach taken by the CA 2006 and the supporting common law and equitable legal environment of the UK? – In what ways is it different? What is the special nature of the ?fiduciary? duty and how useful is it to promoting good corporate governance in an international environment? – What does Lee advise for future development of company law in the PRC? – Do you think her suggestions would promote an efficient environment for businesses in China and internationally (give your reasons)? – Comment on any other recent developments you are aware of in the US or other countries that have sought to increase the responsibilities of directors in ways that are, or could be said to be, related to their fiduciary duties to their companies.