Handling foreign investment disputes

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clpstaff &clp articles

Last year, the PRC Supreme People's Court adopted a consistent approach to conflicts involving the establishment and modification of foreign-invested enterprises. However, uncertainties remain on various issues of remedies and dormant shareholders

The Provisions on Several Issues Concerning the Trial of Disputes Involving Foreign-invested Enterprises (I) ( 关于审理外商投资企业纠纷案件若干问题的规定（一）) (the Provisions), which took effect on August 16 2010, reflects the Supreme People's Court's endeavour to make consistent rules for disputes involving foreign-invested enterprises (FIEs). The Provisions address issues concerning disputes arising during the course of the establishment and modification of FIEs, which basically include three aspects: the validity of contracts subject to approval by administrative authorities, remedies for the transferee under the equity transfer situation, and disputes concerning dormant investments.

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