Provisions on Several Issues Concerning the Application of the «PRC Company Law» (1) (Revised)

(Promulgated by the Supreme People's Court on February 20 2014 and effective as of March 1 2014.)

Judicial Interpretation [2014] No.2

With a view to correctly applying the PRC Company Law amended at the 18th Session of the Standing Committee of the 10th National People's Congress on October 27 2005, we issue the following provisions on issues relevant to the specific application of the Company Law by people's courts in the course of trying relevant civil disputes.

Article 1: If the civil acts or events in trials of civil cases by people's courts that are still pending or were newly accepted after the implementation of the Company Law occurred prior to its implementation, they shall be governed by the laws, regulations and judicial interpretations in effect at the time thereof.

Article 2: If a relevant civil act or event resulted in a dispute prior to the implementation of the Company Law and a suit in respect thereof is brought before a people's court and if the laws, regulations and judicial interpretations in effect at the time thereof are silent on the matter, the relevant provisions of the Company Law may be referred to and applied.

Article 3: If, at the time a plaintiff brings a suit before a people's court on the grounds specified in the second paragraph of Article 22 or the second paragraph of Article 74 of the Company Law, the time limits specified in the Company Law has expired, the people's court shall not accept the case.

Article 4: The shareholding period of at least 180 days in succession specified in Article 151 of the Company Law shall have elapsed by the time the shareholder(s) institute(s) a suit in the people's court. The specified total holding of at least 1% of the company's shares means the total of the shares held by two or more shareholders.

Article 5: The Company Law shall not apply in retrials by people's courts in accordance with the law of cases in which a final judgment was reached prior to the implementation of the Company Law.

Article 6: These Provisions shall be effective as of the date of promulgation.