Supreme People's Court, Provisions on Several Issues Concerning the Trial of Disputes Involving Foreign-invested Enterprises (1)
最高人民法院关于审理外商投资企业纠纷案件若干问题的规定（一）
October 13, 2010 | BY
clpstaff &clp articles &Contracts not yet approved are still valid.
Issued: August 5 2010
Effective: August 16 2010
Main contents: The Provisions address the issues of the application of law concerning disputes arising in the course of the establishment, the modification, etc. of foreign-invested enterprises, which mainly include the validity of contracts without approval and its legal consequences, equity confirmation, equity transfers and equity pledges.
The fact that a contract has been determined not to have entered into effect due to its not having been approved shall not affect the performance by the concerned parties of the provisions of the contract on their approval application obligations or the validity of the provisions specified therein relating to their approval application obligations (Article 1).
If, after the formation of an equity transfer contract of a foreign-invested enterprise, the transferor and foreign-invested enterprise fail to perform their approval application obligations and the transferee requests that the transferor and the foreign-invested enterprise jointly perform their approval application obligations within a fixed period of time or requests that it itself be permitted to carry out the approval procedures should the transferor and the foreign-invested enterprise fail to do so, the people's court shall uphold such request (Article 6).
The Provisions also stipulate the rules for handling situations where the equity transfer contract has not been approved, there is a dispute arising from investment with a nominee shareholder, and a shareholder has not carried out registration for its capital contribution.
Related legislation: PRC General Principles for the Civil Law, Apr 12 1986; PRC Contract Law, Mar 15 1999, CLP 1999 No.4 p.19; PRC Property Law, Mar 16 2007, CLP 2007 No.4 p.31; PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p.21; PRC Sino-foreign Equity Joint Venture Law (2nd Revision), Mar 15 2001, CLP 2001 No.3 p.5; PRC Sino-foreign Cooperative Joint Venture Law (Revised), Oct 31 2000, CLP 2000 No.10 p.4; and PRC Wholly Foreign-owned Enterprise Law (Revised), Oct 31 2000, CLP 2000 No.10 p.4
clp reference:2300/10.08.05prc reference:法释 [2010] 9号promulgated:2010-08-05effective:2010-08-16This premium content is reserved for
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