On December 29, 2023, the Seventh Session of the Standing Committee of the 14th National People's Congress voted to adopt the newly revised *Company Law of the People's Republic of China*, which shall come into force as of July 1, 2024.
01 Case Information
Over the past one to two years, the number of cases involving objection to execution, action for objection to execution, disputes over shareholders' impairment of the interests of company creditors, and property division lawsuits has witnessed a sharp surge. Most of such cases are a series of derivative lawsuits filed by creditors when their claims fail to be satisfied after the people's courts render judgments on property-related disputes and the judgments are enforced. These derivative lawsuits arise from circumstances including withdrawal of capital contributions by company shareholders, debt evasion by company shareholders by means of equity transfer, and debt evasion by individuals through fraudulent transfer of real property, among others. Recently, the author handled a case where a shareholder was added to bear liability for the company's debts on the ground of withdrawal of capital contributions, which triggered reflections on the civil liability and criminal liability concerning "withdrawal of capital contributions".
Judicial Rules: Where there is no evidence to prove that the bid inviter and the bidder conducted negotiations on substantive terms such as bid price, bidding proposal and other relevant contents prior to the bidding, which ultimately affects the bid-winning result, the bid-winning contract shall be valid. The separate construction project contract concluded by the bid inviter and the winning bidder, which is inconsistent with the bid-winning contract on substantive terms including project scope, construction period, project quality, project price and other relevant contents, shall be void. The bid-winning contract shall prevail in respect of the contractual rights and obligations of both parties.
Recently, we have concluded a case concerning the application for recognition of a U.S. divorce judgment filed with the Shanghai court. We would like to take this opportunity to share relevant content with you (there is a surprise at the end of this article).
