The joint stock cooperative enterprise (JSCE) is a new form of enterprise organization in China that is particularly well suited to Chinese ideological and economic characteristics. The JSCE utilizes certain features of a shareholding system, which can be independent from the government and have clearly defined property and ownership rights-basic elements routinely assumed in the corporate law of western countries, but still new in a country constitutionally committed to Marxist-Leninist principles.
This article introduces the concept and legal nature of the JSCE. It analyzes the concept of a legal person and the distinctions between the JSCE and other business forms, such as joint stock companies, limited liability companies, and partnerships. This article also addresses the many unresolved issues pertaining to JSCEs. It concludes by recommending legislative reforms and evaluating the usefulness of the JSCE to the Chinese economy.
The Joint-Stock Cooperative Enterprise: A New Independent Legal Entity in China,
23 Hastings Int'l & Comp. L. Rev. 125
Available at: https://repository.uchastings.edu/hastings_international_comparative_law_review/vol23/iss1/4