What the Soho China and Fosun case means for the real estate sector

| BY

clpstaff &clp articles

The case between Soho China and Fosun has shown that the transfer of equity without the consent of subsidiary equity-holders evades the right of first refusal. The Judgment may pose a threat to this practice

The two companies fought for the development rights of the most expensive piece of land in Shanghai before the Shanghai First Intermediate Court.

“The judgment ruled that the transfer of equity in a company without the consent of the company's subsidiary company's other equity-holders was considered as circumventing the other equity-holders' right of first refusal,” said Li Haifeng, a lawyer with Global Law Office in Beijing.

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]