The nominee’s heir has already sold the equity — can I still recover it?
It depends on whether the buyer qualifies as a bona fide acquirer. If the buyer knew or should have known of the existence of the nominee shareholding relationship, a bona fide acquisition is not constituted, and you may assert that the transfer is void and recover the equity. If the buyer was unaware, paid a reasonable price, and completed the change of registration, a bona fide acquisition is constituted and the equity cannot be recovered; however, you may claim compensation from the nominee’s heir, limited to the actual value of the inherited estate (Article 1161 of the PRC Civil Code limits inheritance to the extent of the estate).
