China considers legalizing IPR as corporate shares

Chinese legislators are expected to mull over draft amendments to the company law next week which would legalize the use of intellectual property rights (IPR), stock equity and accredited capital as corporate shares, Friday's China Securities Daily quoted "well-informed sources" as saying.

The Standing Committee of China's top legislature, the National People's Congress (NPC), will be in session from Feb. 25 to 28. The draft amendments, which were passed in principle at an executive meeting of the State Council, or the Chinese central government in December, also aim at improving the corporate governance structure, beefing up protection of shareholders' rights and improving the country's system of corporate fund-raising.

"The amendments are oriented towards further lifting government intervention, giving companies free rein and enhancing the protection of shareholders rights," an unnamed Chinese legal expert told the paper. "The draft amendments contain some major breakthroughs."

Earlier, Cheng Siwei, vice chairman of the NPC Standing Committee, said that draft amendments to the securities law would also be deliberated by the committee this year.

Source: Xinhua