1. What a Huizhou equity lawyer does for you

• Cross-city group structuring: the shareholding chain, actual control and decision-making between Shenzhen and Huizhou entities
• Equity litigation: shareholder status, right of information (Art. 57), profit distribution (Arts. 210, 212), liability for prejudice to shareholder interests
• Nominee shareholding and disclosure: establishing beneficial ownership and the route to disclosure (Arts. 22, 24)
• Transfers and exit: review of transfer agreements, pre-emption rights (Arts. 84, 85), dissenting shareholders’ repurchase right (Art. 89)
• Inheritance and marital division: succession to shareholder status (Art. 90), and dealing with exclusion clauses in the articles
• Governance and deadlock: validity of resolutions (Arts. 25, 26, 27), dissolution and liquidation (Art. 231)

2. Which court in Huizhou hears your equity dispute?

2.1 Six basic-level courts plus the Huizhou Intermediate Court

The Huizhou Intermediate People’s Court supervises the Huicheng District, Huiyang District, Boluo County, Huidong County and Longmen County People’s Courts and the Daya Bay Economic and Technological Development Zone People’s Court. A company registered in a given district or county is generally litigated in the corresponding basic-level court; significant first-instance cases and appeals go to the Huizhou Intermediate People’s Court.

2.2 Corporate-organisation disputes: company domicile

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. In a “Shenzhen headquarters plus Huizhou plant” structure it is essential to identify which company the claim targets: a company domiciled in Shenzhen and one domiciled in Huizhou are heard in entirely different courts.

2.3 Foreign-related and Hong Kong / Macao / Taiwan cases

Under the current position of the Guangdong High People’s Court, the Huizhou Intermediate People’s Court hears first-instance foreign-related and Hong Kong / Macao / Taiwan civil and commercial cases with an amount in dispute of RMB 40 million or more; cases below that threshold are heard by the basic-level courts.

2.4 Arbitration: Huizhou Arbitration Commission

Where the articles or a contract provide for arbitration, the dispute goes to the agreed institution — commonly the Huizhou Arbitration Commission.

3. Common equity disputes in Huizhou

• Control disputes across the Shenzhen–Huizhou structure: with headquarters and production in different cities, the validity of resolutions and the reality of control readily conflict
• Establishing contributions and capacity input: whether contributions made as equipment, plant use rights or order resources have been fully made
• Nominee shareholding: arrangements adopted for industrial policy or approval convenience, and the difficulty of establishing ownership once relations change
• Inheritance and family succession: disagreements among heirs over shareholder status and dividend rights (Art. 90)
• Exit and deadlock: repurchase claims (Art. 89) and judicial dissolution (Art. 231) where profits are withheld or decisions are paralysed

4. How we work

1. Clarify parties and venue: map the shareholding relationships and domiciles within the group to determine who to sue and where.
2. Secure evidence: systematically organise registry files, contribution and input evidence, resolutions and correspondence, and financial records; apply for investigation orders or an audit where necessary.
3. Design the pathway: assess non-litigious routes such as negotiated buy-out and amendment of the articles first, and arrange asset preservation where litigation is required.
4. Deliver the outcome: drive enforcement and complete the registration of share changes and updates to the articles and shareholders’ book.

5. Frequently Asked Questions (FAQ)

Q1: Which court has jurisdiction over a company equity dispute in Huizhou?
Huizhou has six basic-level courts — Huicheng District, Huiyang District, Boluo County, Huidong County, Longmen County and the Daya Bay Economic and Technological Development Zone. Under Article 27 of the Civil Procedure Law, corporate-organisation disputes go to the court of the company’s domicile, that is the basic-level court covering the registered district or county; cases of greater value or significance, and all appeals, go to the Huizhou Intermediate People’s Court.

Q2: The company is in Shenzhen but the factory is in Huizhou — where should we sue?
It depends on which company the claim targets. Under Article 27 of the Civil Procedure Law, actions concerning incorporation, shareholder status, profit distribution and dissolution are heard where the company is domiciled — sue the Shenzhen company in Shenzhen, the Huizhou company in Huizhou (by registered district or county). Where the substance is a contractual payment claim such as an unpaid transfer or repurchase price, contract rules apply and the defendant’s domicile or place of performance may also be competent. Set out the parties and jurisdiction in writing before filing.

Q3: Who exercises the shares after a shareholder dies?
Under Article 90 of the new Company Law, upon the death of a natural person shareholder the lawful heirs may inherit shareholder status unless the articles provide otherwise. Where an heir is a minor or there are several heirs, voting rights are typically exercised by a legal representative or a representative chosen by the co-owners, with dividends and exit resolved by agreement or litigation. Amending the articles early to set out rules for voting in inheritance scenarios is strongly advisable.

Q4: Can a shareholder require the company to buy out its shares if no dividends are paid?
In certain circumstances, yes. Under Article 89 of the new Company Law, where a company has failed to distribute profits to shareholders for five consecutive years while remaining profitable for those five years and meeting the statutory conditions for distribution, a shareholder who voted against the relevant resolution may require the company to buy its shares at a reasonable price. If no agreement is reached within 60 days of the resolution, the shareholder may sue within 90 days of the resolution.

6. Contact us

Lawyer Kevin Jun Lin | Guangdong Zhenpin Law Firm

Phone / WeChat: +86 189 3887 1445

Office: Room 4004, Tower B, Shenfang Plaza, 3005 Renmin South Road, Luohu District, Shenzhen, China

Online: Contact us | FAQ | About us

Service areas: Huizhou Equity Lawyer | Shenzhen Equity Lawyer | Dongguan Equity Lawyer | Guangzhou Equity Lawyer