Corporate Purpose: A Comparative Examination of the UK and Chinese Approaches

The debate over corporate purpose, namely in whose interests a company should be run, has increasingly shifted towards a model that emphasises sustainable long-term success and the interests of wider society. However, the UK and China appear to be pursuing different approaches to this objective. The UK has relied primarily on a soft-law approach, while retaining a statutory framework under the Companies Act 2006 that has been characterised as shareholder-oriented. By contrast, China’s recently revised Company Law places greater emphasis on corporate social responsibilities and stakeholder interests, alongside changes to the allocation of powers within the company. These contrasting approaches offer two distinct pathways for the future development of corporate governance.

Dr Min Yan is a Reader and Deputy Associate Dean (Research) at City Law School, University of London. He is the founding Director of the Centre for Commercial and Corporate Law and Editor of the City Law Forum. His research explores the intersection of business and law, with particular expertise in corporate law, corporate governance and corporate responsibility. His work has been published in leading journals, including the Legal Studies, Cambridge Law Journal, Journal of Corporate Law Studies, Journal of Business Law, Delaware Journal of Corporate Law, and Asia Pacific Law Review among others. Dr Yan is qualified as a solicitor in both England and Wales and China. Before entering academia, he practised law and worked as a legal consultant.