To deepen lawyers' understanding of the core content and spirit of the new Company Law and better adapt to legal changes and challenges, JAVY Law Firm successfully hosted the third session of the JAVY Law Series on May 21. Partners Cai Lei Esq. and Ding Yufang Esq. were the main speakers, and the event was live-streamed online.
Ms. Ding’s presentation, titled "Interpreting the New 'Company Law' from the Perspective of Control," highlighted five significant changes: 1. Elimination of dual restrictions on external transfers. 2. Clarification of notification and equal condition specifics. 3. Remedies for refusal to change registration. 4. The timing of shareholder qualification and the effect of unregistered share transfers. 5. The introduction of a new forfeiture system for shares. Ding emphasized the new law's clarification that shareholder resolutions must be approved by a majority of voting rights, establishing a legal ratio for general matters in limited liability companies for the first time. The law also allows for the separation of voting rights from shares, providing more flexibility in shareholder rights. Regarding the board and legal representatives, Ding discussed the responsibilities of "de facto directors" and "shadow directors," and the challenges legal representatives may face during resignation. Ding used case studies to provide practical legal tips and guidance.
Mr. Cai's presentation focused on "Equity Investment and Buybacks." He detailed common disputes, including:
· Shareholders requesting the company to repurchase shares.
· Disputes arising from agreements or company bylaws.
· Investors requesting the company or shareholders (or actual controllers) to transfer equity.
Cai analyzed various scenarios and potential risks during equity buybacks, emphasizing the importance of precise legal provisions and practical feasibility. He offered valuable advice on managing risks in equity buybacks and betting agreements, stressing the need to choose appropriate investment institutions, carefully negotiate agreement terms, and seek professional services to ensure legal compliance and minimize risks.
The successful event showcased JAVY Law Firm's deep expertise and practical experience, demonstrating their commitment to the new "Company Law." JAVY Law Firm will continue to monitor the implementation of the new law, providing high-quality legal services to support businesses' healthy development.
© Beijing JAVY Law Firm Beijing ICP Registration No. 18018264-1
