Is the Equity Transfer Agreement of a Chinese-Foreign Contractual Joint Venture Valid? A Case Comment on Xianyuan v.Zhongxin

Under Chinese law, when parties have signed an equity transfer agreement of the Chinese-Foreign contractual joint venture, they need to report to the examination and approval authority for approval. However, due to imperfection of and conflicts among laws and regulations as well as misunderstanding of the above system, it is always difficult for judges to determine the validity of such equity transfer agreement under the administrative approval system. Among the three categories of FIEs provided in Chinese law 1, scholars have had a comprehensive discussion over equity transfer agreement involving Sino-Foreign Equity Joint Venture Enterprises, but this case is concerned with the equity transfer agreement of a Chinese-Foreign contractual joint venture. In this case, the People’s Supreme Court holds that the equity transfer agreement that has not undergone the approval procedures are not valid but not void. Furthermore, the parties that are bound to submit the agreement to the approval authority shall perform their duties of this kind.     

我心中的○

“○”在我们的生活中无所不在。我心目中的“○”是什么呢？     

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