Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (I) (Revised in 2014)

Fa Shi [2014] No.2

February 20, 2014

(Adopted at the 1382nd meeting of the Judicial Committee of the Supreme People's Court on March 27, 2006 and amended in accordance with the Decision on Amending the Provisions on Several Issues concerning the Application of the Company Law of the People's Republic of China which was adopted at the 1607th meeting of the Judicial Committee of the Supreme People's Court on February 17, 2014)

In order to correctly apply the Company Law of the People's Republic of China (hereinafter referred to as the "Company Law") amended at the 18th session of the Standing Committee of the Tenth National People's Congress on October 27, 2005, issues concerning the application of the Company Law by the people's courts in the hearing of relevant civil disputes are prescribed as follows:

Article 1 If the civil act or event involved in a case undecided or newly accepted by a people's court after the implementation of the Company Law occurred prior to the implementation of the Company Law, the laws, regulations and judicial interpretations effective at that time shall apply.

Article 2 Where a lawsuit is brought to a people's court prior to the implementation of the Company Law because of the disputes over a civil act or event, if there is no clear provision in the laws, regulations and judicial interpretations prevailing at that time, the case may be dealt with by reference to relevant provisions of the Company Law.

Article 3 Where the time when a lawsuit is lodged to a people's court by the plaintiff on the ground of the reasons mentioned in Paragraph 2 of Article 22 or Paragraph 2 of Article 74 of the Company Law exceeds the time limit as prescribed in the Company Law, the people's court shall not accept the case.

Article 4 The expression of "shareholding period of 180 consecutive days or longer" mentioned in Article 151 of the Company Law shall be the shareholding period which has expired when a shareholder initiates a lawsuit to a people's court. The expression of "aggregately holding 1% or more of the shares of the company" means the aggregate of the shares held by two or more shareholders.

Article 5 The Company Law shall not apply to the retrial of a case in accordance with the law for which a final judgment has been made by a people's court before the implementation of the Company Law.

Article 6 The Provisions of the Supreme People's Court on Several Issues concerning the Application of the Company Law of the People's Republic of China (I) (Revised in 2014) shall come into force as of the date of promulgation.