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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.
I suspect the will is forged but the other side won’t produce the original for appraisal—what to do?
You may apply to the court to order production; if they refuse without justified reason, the court may presume the challenger’s asserted content to be true (document-production-order rule). Practical tip: before suing, first fix the will’s existence and content through notarization or evidence preservation to prevent destruction.
Read the answer ›Which is more accurate—market, income, or asset-based approach?
None is ‘most accurate’; each is ‘most matching.’ Heavy-asset firms use the asset-based approach, high-growth light-asset firms use the income approach, and those with comparable transactions use the market approach. If the method severely mismatches the enterprise and distorts the conclusion, re-appraisal may be applied for.
Read the answer ›The judgment gives me the equity, but the company won't register the change — what then?
Apply for compulsory enforcement under the effective judgment; the court will serve a cooperation notice requiring the register update and commercial registration. If the company refuses, the court may order compliance within a time limit, or the registry may change it directly. Shareholder rights run from the moment of entry in the register (new Company Law Art. 86).
Read the answer ›Our clause requires shareholder approval to inherit, but the others simply refuse—what then?
That is precisely the source of deadlock. The clause must include a fallback: “if approval is withheld, the other shareholders shall acquire the equity at a fair price.” A conditional clause without a fallback leaves the heir’s property right hanging in the air; the court will eventually step in, and the outcome becomes even less predictable.
Read the answer ›人寿保险真的”欠债不还”吗?
首页 › 人寿保险真的”欠债不还”吗? 有条件的对。指定受益人的保险金属于受益人个人财产,不用于清偿被保险人生前债务——这是《保险法》第42条的反面推论,司法实践普遍认可。但未指定受益人、受益人写”法定”、或临终突击投保转移财产的,保险金会被认定为遗产或被撤销,隔离失效。
Read the answer ›有了遗嘱还需要买保险吗?
首页 › 有了遗嘱还需要买保险吗? 需要。遗嘱解决”分什么、分给谁”,但股权传承的两大痛点遗嘱无解:一是继承人拿不到现金(公司分红有限、遗产又先得偿债,第1161条),二是遗产程序耗时。保险金给付快、免偿债,恰好补位。股权传”权”,保险传”钱”。
Read the answer ›If both spouses are shareholders, must other shareholders be notified when transferring to each other on divorce?
No. Transfers between shareholders are not subject to the right of first refusal (new Company Law Art. 84(1)). Only the shareholders’ register and the administrative change registration need to be handled.
Read the answer ›Which court in Shenzhen hears an equity dispute?
Under Article 27 of the Civil Procedure Law, actions arising from the establishment of a company, confirmation of shareholder status, distribution of profits and dissolution are heard by the court of the company’s domicile. A company registered in a Shenzhen district is ordinarily heard by that district’s basic-level court; larger or more significant cases go to the Shenzhen Intermediate People’s…
Read the answer ›Which court in Dongguan hears an equity dispute?
Dongguan has no districts or counties; first-instance civil and commercial actions are heard by the First, Second and Third People’s Courts of Dongguan, each covering defined towns. Under Article 27 of the Civil Procedure Law, corporate-organisation disputes go to the court of the company’s domicile — the basic-level court covering the registered town. Larger or more significant cases, and all…
Read the answer ›The will gives the company equity to the son, but the articles require repurchase by other shareholders—what then?
The articles prevail. The son inherits a “right to claim the repurchase price” (property interest), not shareholder status. Equity succession is always a “will + articles” two-document project; making a will while ignoring the articles is doing only half the job.
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