The 2006 CSRC guidelines for articles of association of Chinese listed companies : critiquing from an Australian perspective?

On March 16, 2006, the new Guidelines for Articles of Association of Listed Companies (the Guidelines) came into effect. The Guidelines were promulgated by the Chinese (PRC) Securities and Regulatory Commission (CSRC). It substantially amended the original 1997 version. Much of the Guidelines attempted to emulate elements of international best practice with a Chinese flair. This article will compare and comment on the major Guideline provisions with their counterpart in Australia. The comparative analysis would articulate that the PRC's regulatory codes are far from robust for an efficient capital market. Furthermore much of the Guideline provisions are riddled with ambiguities, whereas Australia's "replaceable rules" have clarity and expound a framework of good governance.