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Equity Dispute FAQ
Below are frequently asked questions on equity and shareholder disputes, compiled by Lawyer Kevin Jun Lin from litigation practice. Every case differs — please consult a lawyer for advice on your specific situation. Answers are currently published in Chinese; use the language switch for the Chinese version, or contact us in English through the form.
If the other shareholders have long known that I am the actual investor, is a further vote still required?
Not necessarily. If the other shareholders were aware of your status as the actual investor and raised no objection for a long time (for example, you actually attended shareholders’ meetings and received profit distributions), the court may treat it as ‘implied consent,’ and the majority-vote procedure need not be repeated. Source article: Who Loses When Nominee Shareholding Goes Wrong? Conditions,…
Read the answer ›In a divorce equity appraisal, which day is the valuation reference date? Is there a law?
There is no unified statutory reference date. The mainstream judicial practice uses the date the divorce lawsuit is filed; where separation is long and finances already separate, the separation date may apply; where the parties agree, their agreement governs. A party advocating a different date must prove that point’s objectivity and fairness.
Read the answer ›Father made two conflicting wills—which one governs?
The last one governs (Civil Code Art. 1142(3)), regardless of whether it is notarized or holographic. But if the last is proven forged or invalid, it reverts to the prior. Note “revocation by conduct”: later selling or gifting the equity is deemed revocation of the relevant content.
Read the answer ›Can the actual investor in nominee-held equity assert rights in the divorce proceedings?
Yes. The actual investor may participate in the proceedings as a third party and assert that it is the true rights holder. However, it must provide sufficient evidence of the nominee holding. The court will render a decision after comprehensively reviewing the authenticity of the nominee relationship.
Read the answer ›After a resolution is revoked, can the assets the company previously transferred under it be recovered?
Revocation of a resolution renders it void ab initio, but transactions between the company and a bona fide third party are unaffected (the newly revised law protects bona fide counterparties). If the assets were transferred to a ‘knowing related party,’ you may separately claim damages for the related-party transaction rather than relying solely on the revocation of the resolution. Source…
Read the answer ›遗嘱、保险、信托三种工具冲突了怎么办?
首页 › 遗嘱、保险、信托三种工具冲突了怎么办? 核心看财产在哪个池子里。股权已转入信托名下的,不再是遗产,遗嘱无权处分(处分无效);仍在个人名下的,按遗嘱处理。这也再次说明:传承方案必须是整体设计,单点工具各自为战必然打架。
Read the answer ›什么情况下的财产约定会被认定”显失公平”?
首页 › 什么情况下的财产约定会被认定”显失公平”? 一方利用对方处于危困状态(如重病、经济困难、情感崩溃)或缺乏判断能力(如不了解股权价值),约定极端不对等的财产分配(如一方净身出户),可能被认定为显失公平,受损方可请求撤销。
Read the answer ›How is compensation calculated for unpaid equity?
First assess the net asset / equity value, then deduct the unpaid contribution obligation (new Company Law Art. 88) and compute compensation on the deducted value. Example: equity worth 10 million but containing 6 million unpaid — the compensation base is 4 million, each party gets 2 million, and the holder continues to bear the 6 million contribution obligation.
Read the answer ›What if he insists on keeping the company and refuses to pay me compensation?
If the holder lacks paying ability, the court may order payment within a reasonable period, or order other shareholders to buy first and satisfy the claim from the proceeds; if still unresolved, physical division or auction of company assets may be considered. During litigation, apply for asset preservation to prevent dissipation.
Read the answer ›A printed will with signature but no witnesses—valid?
Probably void. Printed wills require two or more qualified witnesses present and signing each page (Art. 1136). This formal requirement is the highest-frequency fatal flaw in recent printed-will disputes. Only wholly handwritten holographic wills are exempt from the witness requirement.
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