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| Provisions of the Supreme People`s Court on Some Issues about the Application of the Company Law of the People`s Republic of China (2008, 2006) |
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The Announcement of the Supreme Court of the People`s Republic of China
The Provisions of the Supreme People`s Court on Some Issues about the Application of the Company Law of the People`s Republic of China (ўт), which was adopted at the 1447th meeting of the Judicial Committee of the Supreme People`s Court on May 5, 2008, is hereby promulgated and shall enter into force as of May 19, 2008.
The Supreme Court
May 12, 2008
Provisions of the Supreme People`s Court on Some Issues about the
Application of the Company Law of the People`s Republic of China (ўт)
Fa Shi (2008) No.6
For the purpose of the proper application of the Company Law of the People`s Republic of China (hereafter referred as Company Law), and combined the consideration of judicial practices, provisions regarding application issues of the law in company dissolution and liquidation cases heard by the people`s court are formulated as follows:
Article 1 Where any shareholders, separately or jointly, holding 10 percent or more of the shareholder`s voting rights of a company file a lawsuit to dissolute the company with any of the following grounds and accord with provisions in Article 183 of the Company Law, the People`s court shall accept the lawsuit:
(1) The company cannot hold the meeting of shareholders or the general meeting of shareholders for two or more consecutive years, and the company has serious difficulties in its operation and management;
(2) Valid resolutions cannot be made in the meeting of shareholders or the general meeting of shareholders for two or more consecutive years due to the voting by shareholders cannot reach the statutory proportion or the proportion provided in the articles of association of the company, and the company has serious difficulties in its operation and management;
(3) The directors of the company are in conflict for a long time, which cannot be solved through the meeting of shareholders or the general meeting of shareholders, and the company has serious difficulties in its operation and management;
(4) The company has any other kinds of serious difficulties in its operation and management and its continuous existence may cause major damage to the interests of shareholders.
