Published by Maastricht University Press as an open-access research paper
This author’s version (preprint) is published in the Maastricht LAW Research Paper Series. It is freely available for download or online reading.
- Series: Maastricht LAW Research Paper Series
- Institution: Faculty of Law | Maastricht University
Research Paper details
DOI
https://doi.org/10.26481/mup.law.rps.2603
Publication date (online)
09-03-2026
Copyright and license
© 2026 The Authors & Maastricht University – The content of this work is licensed under a CC BY 4.0 International License.
Abstract
Board-level employee representation (BLER) is a practice in company law that allows employees to elect representatives to the board of directors and the supervisory board (i.e. employee directors and employee supervisors) so that employees can participate in corporate governance.
China’s Company Law, adopted on 29 December 2023 (the 2023 Company Law), introduces significant changes to BLER. This article traces the evolution of BLER in China and explains the rationale for promoting employee directors in the 2023 Company Law. The revised law encourages the inclusion of employee directors across all company types. Although the 2023 Company Law represents progress over earlier versions of the company law, significant limitations persist. Employee supervisors face obstacles to discharging their duties; the proportion of employee directors required on the board of directors is unspecified; and the law lacks specific provisions for the qualifications of employee representatives, their competence to perform their functions, and their professional safeguards. In other words, the 2023 Company Law may not substantially enhance BLER.
Publication details and metadata
Title
Progress in Employee Participation? A Critical Analysis of Board-level Employee Representation in China’s New Company Law
Series
Maastricht LAW Research Paper Series
Institution
Faculty of Law | Maastricht University
Authors
Guotong Shen (ORCID) – Maastricht University, The Netherlands (ROR)
M.G. Faure (ORCID) – Maastricht University, The Netherlands (ROR)
DOI (digital version)
https://doi.org/10.26481/mup.law.rps.2603
Copyright and licensing
© 2026 The Authors & Maastricht University – CC BY
The content of this work is licensed under a Creative Commons BY 4.0 International License.
Access to this publication
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Publication Type and Language
Research Paper – English
Publication date (first online)
9 March 2026
Subject
Business and Securities Law, Economics of Regulation
Keywords
board-level employee representation, employee participation, China’s company law, corporate governance
Citation for this work
Shen, G., & Faure, M. G. (2026). Progress in Employee Participation? A Critical Analysis of Board-level Employee Representation in China’s New Company Law. (pp. 1-23). Maastricht University Press. Maastricht LAW Research Paper Series Vol. 2026 No. 03 https://doi.org/10.26481/mup.law.rps.2603
Final Published Version (preferred citation)
This author’s version is published in the Maastricht LAW Research Paper Series. The final version of record is available as:
Shen, G., & Faure, M. G. (2025). Progress in Employee Participation? A Critical Analysis of Board-level Employee Representation in China’s New Company Law. China: An International Journal, 23(4), 132-153. https://doi.org/10.56159/chn.2025.a976475
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