China's Supreme People's Court Monday issued a judicial interpretation of company law, requiring increased efforts to protect shareholders' "right to know" in accordance with the law.
The interpretation, which will come into force Sept 1, stipulated that companies are not allowed to deprive shareholders of their "right to know" under the pretext of corporate charters or agreements signed by shareholders.
The interpretation is also applicable to lawsuits related to company profit distribution, preemptive rights and shareholders' representative litigation.
It will help coordinate relations between shareholders and companies, create a sound business environment and support mass entrepreneurship and innovation. (Source: China Daily)
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