Provisions on Several Issues Concerning the Application of the «PRC Company Law» (5)
关于适用《中华人民共和国公司法》若干问题的规定（五）
People's court allows share transfer to resolve shareholder disputes
(Promulgated by the Supreme People's Court on April 28, 2019 and effective as of April 29, 2019.)
(最高人民法院于二零一九年四月二十八日发布，自二零一九年四月二十九日起施行。)
SPC Interpretation [2019] No.7
法释〔2019〕7号
Article 1: If an affiliated transaction prejudices the interests of a company, the plaintiff company requests, pursuant to Article 21 of the Company Law, that the controlling shareholder, de facto controller, directors, supervisors and senior management personnel compensate for the loss incurred and the defendant mount(s) its/their defense only on the grounds that the procedures for the transaction in question, such as information disclosure and consent of the shareholders' meeting or shareholders' general meeting, provided for in laws, administrative regulations or the company's articles of association were carried out, the people's court shall reject such defense.
第一条 关联交易损害公司利益，原告公司依据公司法第二十一条规定请求控股股东、实际控制人、董事、监事、高级管理人员赔偿所造成的损失，被告仅以该交易已经履行了信息披露、经股东会或者股东大会同意等法律、行政法规或者公司章程规定的程序为由抗辩的，人民法院不予支持。
If the company fails to institute a legal action, a shareholder that satisfies the conditions set forth in the first paragraph of Article 151 of the Company Law may institute a legal action in the people's court pursuant to the second and third paragraphs of Article 151 of the Company Law.
公司没有提起诉讼的，符合公司法第一百五十一条第一款规定条件的股东，可以依据公司法第一百五十一条第二款、第三款规定向人民法院提起诉讼。
Article 2: If an affiliated transaction contract is invalid or a situation that makes it rescindable exists and the company fails to sue the counterparty to the contract, a shareholder that satisfies the conditions set forth in the first paragraph of Article 151 of the Company Law may institute a legal action in the people's court pursuant to the second and third paragraphs of Article 151 of the Company Law.
第二条 关联交易合同存在无效或者可撤销情形，公司没有起诉合同相对方的，符合公司法第一百五十一条第一款规定条件的股东，可以依据公司法第一百五十一条第二款、第三款规定向人民法院提起诉讼。
Article 3: If a director is dismissed by means of a valid resolution of the shareholders' meeting or shareholders' general meeting before the expiration of his/her term and he/she claims that the dismissal is not legally valid, the people's court shall reject such claim.
第三条 董事任期届满前被股东会或者股东大会有效决议解除职务，其主张解除不发生法律效力的，人民法院不予支持。
If, after a director is dismissed, a dispute arises with the company over compensation and he/she institutes a legal action, the people's court shall, in accordance with laws, administrative regulations, the company's articles of association or the provisions of a contract, comprehensively consider factors such as the reason for the dismissal, the time remaining in his/her term of service and the director's remuneration to determine whether compensation is to be paid and the reasonable amount of such compensation.
董事职务被解除后，因补偿与公司发生纠纷提起诉讼的，人民法院应当依据法律、行政法规、公司章程的规定或者合同的约定，综合考虑解除的原因、剩余任期、董事薪酬等因素，确定是否补偿以及补偿的合理数额。
Article 4: Once a resolution of the shareholders' meeting or shareholders' general meeting on the distribution of profits is adopted, the company shall complete the profit distribution by the date specified in the resolution. If the resolution does not indicate a date, the provisions of the company's articles of association shall prevail in respect thereof. If neither the resolution nor the articles of association specify the time or the time exceeds one year, the company shall complete the profit distribution within one year from the date on which the resolution is adopted.
第四条 分配利润的股东会或者股东大会决议作出后，公司应当在决议载明的时间内完成利润分配。决议没有载明时间的，以公司章程规定的为准。决议、章程中均未规定时间或者时间超过一年的，公司应当自决议作出之日起一年内完成利润分配。
If the date for the completion of a profit distribution indicated in a resolution exceeds the time specified in the company's articles of association, a shareholder may, pursuant to the second paragraph of Article 22 of the Company Law, petition the people's court to quash the provision in the resolution concerning the date.
决议中载明的利润分配完成时间超过公司章程规定时间的，股东可以依据公司法第二十二条第二款规定请求人民法院撤销决议中关于该时间的规定。
Article 5: When a people's court hears a case involving a material disagreement among the shareholders of a limited liability company, it shall place great importance on mediation. If the parties achieve a consensus through consultations on resolving the disagreement by any of the methods set forth below, the people's court shall support the same if it does not violate mandatory provisions of laws or administrative regulations:
第五条 人民法院审理涉及有限责任公司股东重大分歧案件时，应当注重调解。当事人协商一致以下列方式解决分歧，且不违反法律、行政法规的强制性规定的，人民法院应予支持：
(1) the company buys back the shares of certain of the shareholders;
（一）公司回购部分股东股份；
(2) another shareholder acquires the shares of certain of the shareholders;
（二）其他股东受让部分股东股份；
(3) a third party acquires the shares of certain of the shareholders;
（三）他人受让部分股东股份；
(4) the company reduces its capital;
（四）公司减资；
(5) the company is divided; or
（五）公司分立；
(6) another method that can resolve the disagreement, allows the company to resume normal operations and avoids the dissolution of the company is adopted.
（六）其他能够解决分歧，恢复公司正常经营，避免公司解散的方式。
Article 6: These Provisions shall be effective as of April 29, 2019.
第六条 本规定自2019年4月29日起施行。
These Provisions shall apply to cases still pending at the time of the implementation hereof. These Provisions shall not apply to cases that were final before the implementation hereof or in retrial cases in which the adjudication supervision procedure applies.
本规定施行后尚未终审的案件，适用本规定；本规定施行前已经终审的案件，或者适用审判监督程序再审的案件，不适用本规定。
In the case of a discrepancy between a judicial interpretation previously promulgated by the Supreme People's Court and these Provisions, these Provisions shall prevail.
promulgated:2019-04-28 effective:2019-04-29本院以前发布的司法解释与本规定不一致的，以本规定为准。
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