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State Compensation Law of the People's Republic of China:An Introduction

 
 A minor under the age of 10 shall be a person having no capacity for civil conduct; a minor aged 10 or over, but not the age of 18, shall be a person with limited capacity for civil conduct. The parents of a minor shall be his guardians. If the parents of a minor are dead or lack the competence to be his guardian, a person from the following categories who has the competence to a guardian shall act as his guardian:
 
 (1) paternal or maternal grandparent;
 (2) elder brother or sister;
 (3) any other closely connected relative or friend willing to bear the responsibility of guardianship and having approval from the units of the minor’s parents or from the neighborhood or village committee in the place of the minor’s residence.
 
 If none of the persons mentioned above are available as guardian, the units of the minor’s parents, the neighborhood or village committee in the place of the minor’s residence or the civil affairs department shall act as his guardian.
 
 Mentally ill persons, unable to account for themselves, shall be considered as one with no capacity for civil conduct. A person from the following categories shall act as guardian for a mentally ill person mentioned above:
 
 (1) spouse;
 (2) parent;
 (3) adult child;
 (4) any other near relative;
 (5) any other closely connected relative or friend willing to bear the responsibility of guardianship and having approval from the unit to which the mentally ill person belongs or from the neighborhood or village committee in the place of his residence.
 
 If none of the above persons as available to act as guardian, the unit to which the mentally ill person belongs, the neighborhood or village committee in the place of his residence, or the civil affairs department, shall act as guardian.
 
 c) The aggrieved citizen’s successor or his other relatives who supported or were supported by him. According to compensation law, where the aggrieved citizen is deceased, his successor or other relatives with maintenance relation, shall have the right to claim compensation. The beneficiaries, according to the Law of Succession of the People’s Republic of China, include first: the spouse, children, or parents; and second: brothers and sisters, paternal grandparents, or maternal grandparents.
 
 In addition, the succession law also defines that widowed daughters-in-law or sons-in-law who have made the pre-dominant contributions in maintaining their parents-in-law, shall, in relationship to their parents-in-law, be regarded as successors first in order. Where a decedent survived his child, the direct lineal descendants of the predeceased child inherit in succession.
 
 (B) Legal Person. A legal person, pursuant to the General Principles of the Civil Law, shall be an organization that has capacity for civil rights, capacity for civil conduct, and independently enjoys civil rights and civil obligations in accordance with the law. A legal person shall have the following qualifications:
 
 a) Establishment in accordance with law;
 b) Possession of the necessary property or funds;
 c) Possession of their own name, organization and premises;
 d) Ability to independently bear civil liability.
 
 The legal person whose lawful rights and interests are infringed upon shall be the claimant for compensation within the scope defined by state compensation law. Where the aggrieved legal person or other organization has been terminated, the legal person or other organization which succeeds its rights shall have the right to claim compensation.


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