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In an era of increasingly complex economic activities and advancing rule of law, issues concerning shareholding nominee arrangements and the removal of legal representatives have become ever more prominent and intricate within civil and commercial law. Equity nominee arrangements involve balancing the interests of multiple parties and mitigating legal risks, while the removal of legal representatives concerns the stability of corporate governance structures and the compliance of business operations. To delve into these judicial practice issues and enhance lawyers' professional expertise in this specialised field, JAVY Law Firm successfully hosted the ‘Judicial Practice Research on Equity Nominee Arrangements and Removal of Legal Representatives’ event on 12 December 2025.

Mr Xu Fadong, Executive Committee Member and Senior Partner of JAVY Law Firm, delivered the opening address, while Mr Yang Shunyi, Partner at JAVY Law Firm and holder of a PhD in Civil and Commercial Law from China University of Political Science and Law, served as the keynote speaker. This event marked the eleventh instalment of the JIA LAWYER Lecture Series. Since its inception, the series has attracted over 600 participating lawyers, with its influence extending beyond Beijing to encompass the entire nation. Mr Xu emphasised that the Lecture Series would continue as a long-term and vital platform for exchange, encouraging greater participation from legal professionals to share experiences, exchange ideas, and collectively enhance legal expertise to better address increasingly complex practical legal challenges.

During the thematic presentation, Solicitor Yang Shunyi first detailed key practical considerations in nominee shareholding cases through real-world examples. He thoroughly analysed the legal risks faced by beneficial owners and nominal shareholders in such arrangements, alongside corresponding mitigation strategies. For beneficial owners, the primary risk lies in the inability to register their ownership. To mitigate this, Mr Yang proposed countermeasures including: entering into legally valid nominee agreements with the registered shareholders; meticulously documenting and preserving evidence of beneficial ownership; exercising certain rights and fulfilling obligations within the target company; and obtaining written acknowledgement of the nominee arrangement from other shareholders.

Additionally, beneficial owners face risks including unauthorised transfer or pledging of held shares by the nominee shareholder, division of shares by the nominee shareholder's spouse or inheritance by their heirs, and court-ordered enforcement against held shares due to the nominee shareholder's debts. Through specific case studies, Mr Yang detailed how beneficial owners should take effective measures to protect their interests when confronting these risks.

Nominee shareholders likewise bear legal risks, including liability for the beneficial owner's failure to fulfil capital contribution obligations, being added as an enforcement subject or facing restricted rights if the target company is blacklisted, and becoming targets of tax investigations when beneficial owners evade taxes. Drawing on relevant legal provisions and practical cases, Mr Yang reminded nominee shareholders to fully recognise these risks during shareholding arrangements and implement corresponding safeguards.

During the interactive session, the atmosphere was lively as attending solicitors posed numerous questions to the lead speaker regarding shareholding nominee arrangements and the removal of legal representatives. The speaker provided patient responses, engaging in in-depth discussions that significantly enhanced the attendees' understanding of these legal complexities.

JAVY Law Firm remains committed to establishing platforms for interaction between solicitors and distinguished legal institutions and industry experts. This initiative fosters personal professional development, cultivates specialised legal knowledge and skills, and empowers solicitors in their professional advancement.