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China Law Key Words · Company Formation

Corporate Governance

Keeping control of a China company after formation—legal representative design, chop custody, board/shareholder mechanics, and deadlock prevention.

  • Control chops · LR
  • Board mechanics
  • Deadlock prevention
  • Counsel directory

What corporate governance covers

Authority design for FIEs and JVs

People

Legal representative

Who can bind the company and how to change them safely.

Seals

Chop control

Custody, dual control, and misuse responses.

Organs

Board & shareholders

Reserved matters, quorums, and information rights.

Crisis

Deadlock & capture

When a minority or manager holds the company hostage.

Start with these guides

Flagship explainers and practical orientation

Governance hygiene for foreign shareholders

If you do not control chops, you do not control the company

  • Document chop custody in writing Who holds which seal, where, and dual-approval rules.
  • Separate bank authorisers from LR where possible Reduce single-person capture risk.
  • Define reserved matters tightly Budgets, guarantees, related-party deals, and IP transfers.
  • Schedule information rights Monthly packs beat emergency inspections.
  • Plan LR succession Illness, resignation, or hostility should not freeze the company.
  • Rehearse emergency responses Lost chops and rogue filings need a playbook.

Frequently asked questions

Orientation only—not legal advice

Who is more powerful: legal representative or board?

In practice, LR plus chops can bind the company even when internal rules say otherwise. Design both carefully.

Can we keep chops offshore?

Often impractical for operations and banking. Dual control onshore is the usual risk design.

What if a local manager refuses to hand over seals?

This is a classic crisis—need urgent local counsel and a recovery plan, not only emails.

When do we need governance counsel?

JV deadlocks, LR changes, or suspected misuse of authority. Use the corporate governance directory.

Need corporate governance counsel?

Work with verified company lawyers or start with the chops and governance guides.

Directory and legal information only—not legal advice. No attorney–client relationship is formed by using this site. Rules and thresholds change; verify current requirements for your facts and jurisdiction.

Guides & articles

Practical writing from counsel and the portal editorial team on this topic