Clarity for company disputes
Recently released judicial interpretations from the Supreme People’s Court of China further clarify a number of uncertainties often faced by Chinese companies (including foreign-invested enterprises), their shareholders and creditors in common disputes related to establishment, capital contribution and shareholder rights
Issue: April 2011
Keywords (click to search):
MWE China Law Offices
company
dispute
conflict
SPC
interpretations
capital contribution
shareholder rights
The amendment to the PRC Company Law (中华人民共和国公司法 (修订)) in 2005 (Company Law) has led to an upsurge of corporate dispute litigations in the Chinese courts, covering a wide array of issues in connection with the establishment, capital contribution, dissolution and shareholder rights of Chinese companies. However, the relevant provisions of the Company Law on these issues have often proved to be too general to provide any unified and practical guidance for the Chinese local courts to adjudicate these cases. As a result, it is not uncommon that the decisions rendered by the local Chinese courts on these issues may vary from place to place.
Ever since the Company Law took effect in 2006, the Supreme People’s Court of China (SPC) has been trying to clarify various legal issues involved in the trial of company disputes. In April 2006, the SPC issued its first interpretation to the Company Law, which...
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