Transferable Ownership Interest

Kuntner, Stephan

doi:10.1007/978-3-030-54181-1_9

Stephan Kuntner⁹

Part of the book series: China-EU Law Series ((CELS,volume 7))

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Abstract

The third core element of a standard corporate form is transferable ownership interest. The attribute of transferable ownership interest shall ensure that the business operation of the FILPE is not interrupted when the identity of its owners changes. An analysis is undertaken of the conditions for, and consequences of a transfer of the membership right in a FILPE. However, the transfer of ownership interest is only one of various ways in which a membership right in a FILPE can be acquired and lost. Therefore, the analysis also includes the establishment and dissolution of a FILPE, the joining and withdrawing from a FILPE and the legal succession because of inheritance as well as the pledge of the ownership interest. This includes an outline of the compensation which must be paid to a withdrawing partner or as a result of the liquidation.

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Notes

1.
Armour et al. (2017), p. 10.
2.
Ibid, p. 10.
3.
Ibid, p. 10.
4.
Ibid, p. 10.
5.
Ibid, p. 10.
6.
Ibid, p. 10.
7.
Ibid, p. 10.
8.
Ibid, p. 10.
9.
Ribstein (1988), p. 874.
10.
Ibid, pp. 835, 860.
11.
For more detail regarding the KGaA, see Raiser and Veil (2015), pp. 389–411.
12.
See Sect. 3.2.3.3.
13.
Armour et al. (2017), p. 11.
14.
Ibid, p. 11.
15.
Ibid, p. 11.
16.
Yuantao et al. (1989), p. 46.
17.
Armour et al. (2017), p. 11.
18.
Ibid, p. 10.
19.
Ibid, p. 10.
20.
Ibid, p. 10.
21.
Ibid, p. 10.
22.
Ribstein (1988), p. 864.
23.
Ibid, p. 844.
24.
Ibid, p. 844.
25.
Ibid, pp. 844–845.
26.
Ibid, p. 845.
27.
Ibid, p. 864.
28.
Ibid, p. 864 fn. 93.
29.
Armour et al. (2017), p. 11.
30.
Ibid, p. 11.
31.
Enriques (2004), pp. 1015–1016.
32.
Armour et al. (2017), p. 11.
33.
Schmidt (2002), pp. 551–552.
34.
Ibid, p. 551.
35.
Ibid, p. 552.
36.
Ibid, p. 551.
37.
Ibid, p. 551.
38.
With regard to German law, see Schmidt (2002), pp. 1320–1325.
39.
See Sect. 7.1.1.1.
40.
Art. 20 PEL.
41.
For a detailed explanation, see Sect. 7.1.2.1.
42.
See Sect. 4.1.8.
43.
Art. 14 Para. 1 PEL.
44.
Art. 2 Para. 3 PEL.
45.
Art. 2 FIPE Provisions.
46.
Art. 17 FIPE Provisions. See also Sect. 4.1.8.3.
47.
See analysis in Sect. 8.2.2.2.1.
48.
See analysis in Sect. 8.2.2.1.
49.
Li (李飞) (ed) (2006), p. 99.
50.
Ibid, p. 99.
51.
Ibid, p. 99.
52.
Ibid, p. 99.
53.
Ibid, p. 99.
54.
Chen (2016), p. 658.
55.
Li (李飞) (ed) (2006), pp. 99–100.
56.
Ibid, pp. 99–100.
57.
Ibid, p. 100.
58.
Hong (洪虎) (2006), pp. 602, 603.
59.
Li (李飞) (ed) (2006), p. 100.
60.
Julius and Bitter (2005), p. 63.
61.
Instructive: Schmidt (2002), pp. 1665–1688.
62.
Julius and Bitter (2005), p. 63.
63.
Li (李飞) (ed) (2006), p. 100.
64.
See Sect. 3.1.3.
65.
Li (李飞) (ed) (2006), p. 100.
66.
Zhang (2015), p. 48.
67.
Art. 2 FIPE Provisions.
68.
Jiao and Kasteleijn (2011), p. 52.
69.
Ibid, p. 52; Liu (2010), p. 39.
70.
von Senger (2006), pp. 54–55.
71.
Ibid, p. 53; Li (2007), p. 35ff.
72.
Lu (吕美昂) (2011), pp. 81–82.
73.
Art. 3 FIL Implementing Regulations.
74.
Xu (徐春雷) and Cao (曹秀峰) (2007), pp. 29–30.
75.
Li (李飞) (ed) (2006), p. 135.
76.
Ibid, p. 135.
77.
Ibid, p. 30.
78.
Arts. 45–46 PEL. See also Sects. 7.1.2.2 and 9.3.2.1.1.
79.
Ye (2002), pp. 137–138.
80.
Ibid, pp. 137–138.
81.
Art. 30 Para. 1 PEL.
82.
See Sect. 9.3.2.1.1.
83.
Li (李飞) (ed) (2006), p. 136.
84.
Ye (2002), p. 138.
85.
Li (李飞) (ed) (2006), p. 136.
86.
Gao (高富平) et al. (1997), p. 268.
87.
Ye (2002), p. 139.
88.
Shen and Weidlich (2016), p. 182.
89.
For a detailed analysis of the MOFCOM approval-requirements with regard to FIEs, see Sect. 9.2.2.2.
90.
Art. 14 Para. 1, Art. 61 PEL When a FILPE loses all of its foreign partners, this does not automatically cause dissolution of the FILPE. The consequences are analysed below in Sect. 9.3.4.
91.
Lin and Yeo (2010), p. 106.
92.
Ibid, p. 106.
93.
Schmidt (2002), pp. 1304–1305.
94.
Li (李飞) (ed) (2006), p. 121.
95.
Ibid, p. 122.
96.
Binz and Sorge (2018), p. 160.
97.
Ibid, p. 161.
98.
Ibid, p. 161.
99.
Lin (2017), p. 203.
100.
Ibid, p. 203.
101.
Ibid, p. 203.
102.
See Sect. 4.1.9.3 fn. 439.
103.
Art. 18 No 2 PEL.
104.
Li (李飞) (ed) (2006), p. 136.
105.
Gao (高富平) et al. (1997), p. 269.
106.
Lin (2011), p. 219.
107.
Ibid, p. 219.
108.
Schmidt (2002), p. 1512.
109.
Li (李飞) (ed) (2006), p. 136.
110.
Ibid, p. 136.
111.
Ibid, pp. 136–137.
112.
Ibid, p. 137.
113.
Ibid, p. 141.
114.
Art. 86 Para. 1 PEL.
115.
Li (李飞) (ed) (2006), p. 137.
116.
Ibid, p. 137.
117.
Ibid, p. 137.
118.
Ibid, p. 135.
119.
Ibid, p. 141.
120.
Art. 88 Para. 3 PEL.
121.
Li (李飞) (ed) (2006), p. 141.
122.
Ibid, p. 137.
123.
Art. 86 Para. 2 PEL.
124.
Art. 86 Para. 2 PEL.
125.
Art. 86 Para. 3 PEL.
126.
Li (李飞) (ed) (2006), p. 142.
127.
Ibid, p. 142.
128.
Art. 31 FIPE Provisions.
129.
Li (李飞) (ed) (2006), p. 142.
130.
Ibid, p. 138.
131.
Ibid, pp. 137, 143.
132.
Ibid, p. 139.
133.
Ibid, p. 139.
134.
Ibid, p. 139.
135.
Ibid, p. 139.
136.
For a detailed analysis, see Sect. 7.1.1.2.
137.
Art. 88 Para. 1 PEL. The newspaper shall be a local newspaper of the place of registration of the partnership enterprise (Li (李飞) (ed) 2006, p. 140).
138.
Art. 143 Para. 1 HGB; Schmidt (2002), pp. 1509–1510.
139.
Art. 88 Para. 1 PEL.
140.
Art. 88 Para. 2 PEL; Li (李飞) (ed) (2006), p. 140.
141.
Art. 88 Para. 2 PEL.
142.
Art. 90 PEL; Li (李飞) (ed) (2006), p. 143.
143.
Ibid, p. 143.
144.
Ibid, p. 143.
145.
Ibid, p. 143.
146.
Article 56 FIPE Provisions restates the provisions of Article 100 PEL.
147.
Art. 90 PEL, Art. 7 FIPE Measures.
148.
Art. 32 FIPE Provisions.
149.
Art. 34 FIPE Provisions.
150.
See analysis in Sect. 8.4.3.
151.
Shen and Weidlich (2016), p. 181.
152.
Circular on certain issues regarding the deregistration after dissolution of Foreign-Invested Enterprises (外商投资企业解散注销登记管理有关问题的通知), promulgated jointly by the State Administration for Industry and Commerce and the Ministry of Commerce on 20 November 2008 with effect as of the same day.
153.
Art. 2 Para. 1 Circular On Deregistration After Dissolution of FIEs in conjunction with Art. 90 Para. 1 Nos 2, 4–6 EJV Implementing Regulations.
154.
Shen and Weidlich (2016), p. 182.
155.
Ibid, p. 182.
156.
Ibid, p. 182.
157.
Ibid, p. 185.
158.
See analysis in Sect. 7.1.1.2.
159.
See Sect. 8.4.4.
160.
Regarding the conversion of a limited partnership enterprise to a general partnership enterprise, see Sect. 9.3.3.
161.
Lin (2017), p. 202.
162.
Ibid, p. 202.
163.
Ibid, p. 202.
164.
Ibid, p. 202.
165.
Regarding a German GmbH, see exemplary Binz and Sorge (2018), pp. 119–122, 126–127, 129–131, 156.
166.
This especially applies to an investment structure where all limited partners are also owners of the corporate general partner of the FILPE. See Sect. 5.3.2.2.1.
167.
Legal succession of the ownership interest in a FILPE is analysed in Sect. 9.4.
168.
Meyer (2016), p. 217.
169.
Li (李飞) (ed) (2006), p. 66.
170.
Ibid, p. 66.
171.
Art. 44 Para. 1 1997 PEL.
172.
Gao (高富平) et al. (1997), p. 240.
173.
Art. 43 Para. 1 PEL.
174.
Li (李飞) (ed) (2006), p. 66.
175.
Schmidt (2002), p. 1316.
176.
Art. 43 Para. 1 PEL.
177.
Li (李飞) (ed) (2006), p. 68.
178.
Ye (2002), p. 120.
179.
Art. 43 Para. 1 PEL.
180.
Li (李飞) (ed) (2006), p. 68.
181.
See Sect. 9.4.
182.
Li (李飞) (ed) (2006), p. 68.
183.
Ibid, p. 68.
184.
Ibid, p. 68.
185.
Ibid, p. 68.
186.
Ye (2002), p. 130.
187.
Art. 44 Para. 1 PEL.
188.
See Sect. 9.3.2.2.
189.
Li (李飞) (ed) (2006), p. 69.
190.
Ibid, p. 69.
191.
Art. 44 Para. 1 PEL.
192.
See Sect. 8.4.2.
193.
Article 53 FIPE Provisions refers to Article 38 Partnership Enterprise Registration Measures, which reiterates the content of Article 95 Para. 2 PEL.
194.
Schmidt (2002), p. 551.
195.
Ibid, p. 551.
196.
Art. 21 EJV Implementing Regulations.
197.
Art. 14 EJV Implementing Regulations.
198.
Wolff (2015), pp. 159–160.
199.
Ibid, pp. 159–160.
200.
Regarding these restrictions, see Sect. 4.1.7.
201.
Schmidt (2002), p. 1447.
202.
Ibid, p. 552.
203.
Ibid, p. 552.
204.
Ibid, p. 552.
205.
See Sect. 7.1.2.2.
206.
See Sect. 3.2.2.
207.
Li (李飞) (ed) (2006), p. 103.
208.
Ibid, p. 103.
209.
Lin (2011), p. 220; Hansmann et al. (2005), p. 13.
210.
Li (李飞) (ed) (2006), p. 71.
211.
DeMott (2004), p. 275.
212.
Binz and Sorge (2018), pp. 124–125; Schmidt (2002), pp. 1457–1458.
213.
Li (李飞) (ed) (2006), p. 71.
214.
Art. 45 No 1 PEL.
215.
Art. 45 No 2 PEL.
216.
Schmidt (2002), pp. 1459–1460.
217.
Ibid, pp. 1459–1460.
218.
Art. 45 No 3 PEL.
219.
Li (李飞) (ed) (2006), p. 72.
220.
Ibid, p. 72.
221.
See Sect. 9.2.2.1.
222.
Art. 45 No 4 PEL.
223.
Li (李飞) (ed) (2006), p. 72.
224.
Ibid, p. 72.
225.
Ye (2002), p. 123.
226.
Ibid, p. 123.
227.
See Sect. 7.1.2.2.
228.
Werthwein (2010), p. 49.
229.
Li (李飞) (ed) (2006), p. 74.
230.
Ibid, p. 74.
231.
Ibid, p. 74.
232.
Ibid, p. 74.
233.
Ye (2002), p. 124.
234.
Li (李飞) (ed) (2006), p. 75.
235.
Ibid, p. 75. Other terms that are used are ‘natural withdrawal’ or ‘rightful withdrawal’ (Wu and Geu 2007–2008, p. 152).
236.
Ye (2002), p. 124.
237.
Art. 48 Para. 1 No 1 PEL.
238.
Art. 9 GPCL/Art. 13 GRCL.
239.
Li (李飞) (ed) (2006), p. 75.
240.
The same shall apply when a partner is legally declared dead. Regarding the regulations for declaring a person legally dead, see Articles 23–25 GPCL/Articles 46–53 GRCL; Li (李飞) (ed) (2006), p. 75.
241.
Li (李飞) (ed) (2006), pp. 81, 128–129.
242.
Ibid, p. 81.
243.
Ibid, p. 81.
244.
Ibid, p. 129.
245.
See Sect. 9.4.1.
246.
Li (李飞) (ed) (2006), p. 75.
247.
Art. 50 Para. 2 No 1 PEL.
248.
Li (李飞) (ed) (2006), p. 75.
249.
Ye (2002), p. 120.
250.
Art. 50 Para. 2 No 2 PEL.
251.
Li (李飞) (ed) (2006), p. 75.
252.
Art. 50 Para. 2 No 3 PEL.
253.
Li (李飞) (ed) (2006), p. 75.
254.
See Sect. 9.3.2.1.2.
255.
Li (李飞) (ed) (2006), p. 129.
256.
Art. 131 Para. 3 No 1 HGB.
257.
Art. 139 Para. 1 HGB.
258.
Binz and Sorge (2018), p. 120.
259.
Art. 177 HGB.
260.
Binz and Sorge (2018), p. 120.
261.
Art. 48 Para. 1 No 2 PEL.
262.
Li (李飞) (ed) (2006), p. 76.
263.
Ibid, p. 76.
264.
Zheng (2010), p. 227.
265.
Ye (2002), p. 124.
266.
Ibid, p. 124.
267.
Ibid, p. 124; Li (李飞) (ed) (2006), p. 76.
268.
The provisions in Article 131, Paragraph 3, Nos 2 and 4 HGB are addressed in the subsequent analysis.
269.
Li (李飞) (ed) (2006), p. 127.
270.
Ibid, p. 127.
271.
Art. 48 Para. 1 No 3 PEL.
272.
Li (李飞) (ed) (2006), p. 76.
273.
Art. 131 Para. 3 No 2 HGB.
274.
For an overview of this discussion, see: Schmidt (2002), pp. 1451–1452.
275.
For a detailed analysis of the cross-border insolvency regime in China, see: Hu (2018), pp. 523–551.
276.
Art. 48 Para. 1 No 4 PEL.
277.
Li (李飞) (ed) (2006), p. 76.
278.
Ibid, p. 76.
279.
Art. 48 Para. 1 No 5 PEL.
280.
See Sect. 7.1.2.2.
281.
Art. 131 Para. 3 No 4, Art. 135, Art. 166 Para. 2 HGB.
282.
Art. 14 Para. 1 PEL. See also the analysis in Sect. 9.2.1.2.2.
283.
Art. 49 Para. 2 1997 PEL.
284.
Li (李飞) (ed) (2006), p. 77.
285.
Ibid, p. 77.
286.
Ibid, p. 128.
287.
Ibid, p. 77.
288.
Ibid, p. 128.
289.
Ibid, p. 128.
290.
Ibid, p. 128.
291.
Ibid, p. 78.
292.
Ibid, p. 78.
293.
Ibid, p. 78.
294.
Binz and Sorge (2018), p. 125.
295.
Li (李飞) (ed) (2006), p. 79.
296.
Ibid, p. 79.
297.
Ibid, p. 79.
298.
Ibid, p. 79.
299.
Art. 49 Para. 1 PEL.
300.
Ye (2002), p. 126.
301.
Ibid, p. 126.
302.
Art. 140, Art. 161 Para. 2 HGB. For details regarding the court ruling, see Schmidt (2002), pp. 1461–1468.
303.
Binz and Sorge (2018), p. 128; Schmidt (2002), p. 1461.
304.
Schmidt (2002), p. 1469.
305.
Ye (2002), p. 125.
306.
Ibid, p. 125.
307.
Binz and Sorge (2018), p. 129.
308.
Ye (2002), p. 125.
309.
Art. 60 PEL.
310.
Art. 140 Para. 1, Art. 161 Para. 2 HGB. Regarding Article 133 HGB, see Sect. 9.3.2.1.1.
311.
Binz and Sorge (2018), p. 128; Schmidt (2002), p. 1462.
312.
Binz and Sorge (2018), p. 128; Schmidt (2002), p. 1462.
313.
Binz and Sorge (2018), p. 128; Schmidt (2002), p. 1462.
314.
Binz and Sorge (2018), p. 128; Schmidt (2002), p. 1462.
315.
Art. 49 Para. 1 No1 PEL.
316.
Li (李飞) (ed) (2006), p. 79.
317.
Ibid, p. 79.
318.
Art. 49 Para. 1 No 2 PEL.
319.
Li (李飞) (ed) (2006), p. 79.
320.
Ibid, p. 79.
321.
Art. 49 Para. 1 No 3 PEL.
322.
Li (李飞) (ed) (2006), p. 80.
323.
See Sect. 8.3.2.1.
324.
Li (李飞) (ed) (2006), p. 80.
325.
For example, Article 99 PEL for a general partner who enters into competition with the partnership enterprise, or the liability provisions for a limited partner who engages in the execution of partnership affairs.
326.
Art. 49 Para. 1 No 4 PEL.
327.
Li (李飞) (ed) (2006), p. 80.
328.
Binz and Sorge (2018), pp. 131–143; Schmidt (2002), pp. 1470–1474.
329.
Binz and Sorge (2018), p. 132.
330.
Ibid, p. 132.
331.
Ibid, p. 140.
332.
Ibid, p. 140.
333.
Ibid, p. 140.
334.
Ibid, p. 140.
335.
Ibid, p. 140.
336.
Li (李飞) (ed) (2006), p. 80.
337.
The provisions on the effectiveness of an ‘expression of intention’ in Articles 137–142 GRCL apply, the notice therefore becomes effective when the partner becomes aware of its contents. This is also the case when a letter reaches the partner’s general sphere of control, e.g. his mailbox (Weidlich and Shen 2015, pp. 102–103).
338.
Art. 49 Para. 3 PEL.
339.
Ye (2002), p. 126.
340.
Li (李飞) (ed) (2006), p. 80; Gao (高富平) et al. (1997), p. 251.
341.
Li (李飞) (ed) (2006), p. 80; Gao (高富平) et al. (1997), p. 251.
342.
Li (李飞) (ed) (2006), p. 80.
343.
Ibid, p. 80.
344.
Ye (2002), p. 126.
345.
Reasons that cause dissolution of a partnership enterprise are conclusively listed in Article 85 PEL.
346.
Lin (2017), p. 183.
347.
See the analysis in Sect. 9.2.2.1.
348.
Ye (2002), p. 127.
349.
Binz and Sorge (2018), p. 124; Schmidt (2002), pp. 1448–1449.
350.
Windbichler (2014), p. 126.
351.
Ye (2002), p. 127.
352.
Art. 20 PEL. See Sect. 9.2.2.1.
353.
Schmidt (2002), p. 207.
354.
Ibid, p. 207.
355.
Art. 738 Para. 1 BGB; Art. 105 Para. 3 HGB.
356.
Schmidt (2002), p. 1319.
357.
Ibid, pp. 207–208.
358.
Ibid, p. 208.
359.
Ibid, p. 208.
360.
Ibid, p. 208.
361.
Ibid, pp. 1319–1320.
362.
Ye (2002), p. 128.
363.
Art. 51 Para. 1 PEL.
364.
Wu and Geu (2007–2008), p. 149.
365.
Li (李飞) (ed) (2006), p. 83.
366.
Ibid, p. 83.
367.
Ibid, p. 84.
368.
Ibid, p. 84.
369.
Art. 48 Para. 3; Art. 49 Para. 2 PEL.
370.
Li (李飞) (ed) (2006), p. 84.
371.
Ibid, p. 78.
372.
Ibid, p. 78.
373.
Art. 18–19 FIPE Provisions, Art. 13 PEL.
374.
Li (李飞) (ed) (2006), p. 78; Ye (2002), p. 124.
375.
Instructively: Schmidt (2002), pp. 1477–1478.
376.
Gao (高富平) et al. (1997), p. 256.
377.
Garner (2009), p. 207.
378.
Gao (高富平) et al. (1997), p. 256.
379.
Ye (2002), p. 127.
380.
Art. 738 Para. 2 BGB; Art. 105 Para. 3 HGB.
381.
Garner (2009), p. 134.
382.
Ibid, p. 763.
383.
Ye (2002), p. 127.
384.
Binz and Sorge (2018), p. 144; Schmidt (2002), pp. 1477–1478.
385.
Schmidt (2002), pp. 1477–1478.
386.
Ye (2002), p. 135.
387.
Li (李飞) (ed) (2006), p. 84.
388.
Arts. 16, 64 PEL.
389.
Li (李飞) (ed) (2006), p. 85.
390.
Ibid, p. 86.
391.
Ibid, p. 86.
392.
Ibid, p. 86.
393.
Ibid, p. 86.
394.
Ibid, pp. 85–86.
395.
Ibid, p. 86; Ye (2002), p. 128.
396.
Art. 738 Para. 1 BGB; Art. 105 Para. 3 HGB.
397.
Schmidt (2002), p. 1475.
398.
Ibid, p. 1475.
399.
Ye (2002), p. 127.
400.
Ibid, p. 127.
401.
See Sect. 8.4.5.
402.
Li (李飞) (ed) (2006), p. 84.
403.
Ibid, p. 84.
404.
Ibid, p. 85.
405.
Ibid, p. 85.
406.
Ye (2002), p. 128.
407.
Ibid, p. 128.
408.
Art. 161 Para. 2, Art. 105 Para. 3 HGB, Art. 740 Para. 2 BGB.
409.
Art. 161 Para. 2, Art. 105 Para. 3 HGB, Art. 740 Para. 1 BGB.
410.
Schmidt (2002), p. 1478.
411.
Ibid, p. 1478.
412.
Ibid, p. 1478.
413.
Li (李飞) (ed) (2006), p. 87.
414.
Ibid, p. 87.
415.
Art. 739 BGB; Art. 105 Para. 3 HGB.
416.
Schmidt (2002), p. 1482.
417.
Binz and Sorge (2018), p. 145; Schmidt (2002), p. 1483.
418.
Schmidt (2002), p. 1484.
419.
Ibid, p. 1484.
420.
Ibid, p. 1484.
421.
Ibid, p. 1484.
422.
Ibid, pp. 1484–1488.
423.
See Sect. 8.4.2.
424.
Art. 75 PEL. See Sect. 9.2.2.1.
425.
Arts. 18–19, 23 FIPE Provisions, Art. 13 PEL.
426.
Art. 2 FIPE Measures.
427.
See Sect. 9.3.1.2.
428.
Art. 8 FIPE Measures, Art. 27 FIPE Provisions, Arts. 18–19 Partnership Enterprise Registration Measures.
429.
Li (李飞) (ed) (2006), p. 132.
430.
Ibid, p. 132.
431.
See Sect. 8.4.2.
432.
The same shall apply for the successor in title to a legal person or other organisation that has been terminated (Art. 80 PEL).
433.
Li (李飞) (ed) (2006), pp. 81, 129.
434.
Ibid, p. 68.
435.
Ibid, p. 68.
436.
Ibid, p. 68.
437.
Art. 50 Para. 1 PEL.
438.
Art. 50 Para. 1 PEL.
439.
Li (李飞) (ed) (2006), p. 75.
440.
Ibid, p. 129.
441.
Ibid, p. 129.
442.
Art. 13, 24 PEL, Arts. 18–19 FIPE Provisions.
443.
Li (李飞) (ed) (2006), p. 68.
444.
Schmidt (2002), p. 1338.
445.
Art. 177 HGB.
446.
Roth (2020), § 177 Para. 3.
447.
Schmidt (2002), pp. 1338–1343.
448.
Ibid, pp. 1346–1350.
449.
Ibid, pp. 1346–1350.
450.
Ibid, pp. 1343–1346.
451.
Li (李飞) (ed) (2006), p. 35.
452.
Weng and Xia (2007), p. 97. For more details, see Sect. 8.4.3.
453.
See Sect. 3.1.4.
454.
See Sect. 7.1.2.1.
455.
Schmidt (2002), p. 563.
456.
Art. 413 BGB; Schmidt (2002), pp. 1321–1323.
457.
Binding and Zhang (2015), p. 82.
458.
Ibid, p. 84.
459.
Ibid, p. 84.
460.
Ibid, p. 84.
461.
Ibid, p. 84.
462.
Ibid, p. 84.
463.
Arts. 79–90 Contract Law.
464.
Art. 92 Legislation Law; Zhang (2006), p. 235.
465.
Art. 92 Legislation Law; Zhang (2006), p. 235.
466.
At the time of writing of this book, the new Civil Code has not yet been promulgated by the NPC and therefore cannot be considered in the analysis.
467.
See Sects. 4.1.9.1 and 7.1.2.1.
468.
Art. 92 Legislation Law.
469.
Art. 22 Para. 1 PEL.
470.
Li (李飞) (ed) (2006), p. 35.
471.
Schmidt (2002), pp. 1322–1323.
472.
Ibid, pp. 1322–1323.
473.
Art. 21 Para. 1 1997 PEL.
474.
Art. 22 Para. 1 PEL.
475.
Schmidt (2002), p. 1323.
476.
Ye (2002), p. 108.
477.
Schmidt (2002), p. 1323.
478.
Art. 4 Para. 4 EJV Law, Art. 20 EJV Implementing Regulations, Art. 10 CJV Law, and Art. 23 CJV Implementing Regulations.
479.
Li (李飞) (ed) (2006), p. 36.
480.
Ibid, p. 36.
481.
Art. 23 PEL.
482.
Li (李飞) (ed) (2006), p. 36.
483.
Ibid, p. 36.
484.
Ibid, p. 36.
485.
Wu and Geu (2007–2008), p. 149.
486.
Regarding the requirements and consequences of such a transfer, see Sect. 9.3.5.
487.
Gao (高富平) et al. (1997), p. 188.
488.
Art. 22 1997 PEL.
489.
Art. 23 PEL.
490.
Art. 20 Para. 2 EJV Implementing Regulations; Mahony (2015), p. 183. Notably, no right of first refusal has been stipulated for the CJV, which reflects its more flexible structure in comparison to the EJV.
491.
Mahony (2015), p. 183.
492.
Li (李飞) (ed) (2006), p. 37.
493.
See Sect. 7.1.2.1.
494.
See Sect. 9.3.1.1.
495.
Li (李飞) (ed) (2006), p. 68.
496.
Ibid, p. 68.
497.
Ibid, p. 68.
498.
Ibid, p. 119.
499.
Art. 73 PEL.
500.
Li (李飞) (ed) (2006), p. 119.
501.
Art. 73 PEL.
502.
Ibid, p. 119.
503.
Ibid, p. 119.
504.
Ribstein (1988), p. 893.
505.
Li (李飞) (ed) (2006), p. 35.
506.
Art. 22 Para. 2 PEL.
507.
Kroymann (2009), p. 163.
508.
Mahony (2015), p. 183.
509.
Arts. 18–19, Art. 26 Para. 1, Art. 53 FIPE Provisions.
510.
The same requirement applies with regard to CJVs and WFOEs.
511.
Art. 7 Para. 1 FIE Changes in Equity Provisions.
512.
Art. 20 FIE Changes in Equity Provisions.
513.
Art. 24 PEL.
514.
Art. 19 Para. 1 PEL.
515.
See Sect. 9.3.2.2.
516.
Art. 24 PEL.
517.
Li (李飞) (ed) (2006), p. 68; Gao (高富平) et al. (1997), p. 188.
518.
See Sect. 8.4.3.
519.
Ye (2002), p. 108.
520.
See Sect. 8.4.3.
521.
Li (李飞) (ed) (2006), p. 68.
522.
See Sects. 9.3.2.2 and 9.3.3.
523.
See introduction to Sect. 9.
524.
Armour et al. (2009), p. 10.
525.
Ibid, p. 10.
526.
See Sect. 8.4.3.
527.
Mahony (2015), p. 183.
528.
Ibid, p. 183.
529.
Ibid, pp. 183–184.
530.
Ibid, p. 184.
531.
See Sect. 8.2.2.3.
532.
Circular on Strengthening the Management of Enterprise Income Tax Colletion of Proceeds from Equity Transfers by Non-Resident Enterprises (加强非居民企业股权转让所得企业所得税管理的通知), promulgated by the State Administration of Taxation on 10 December 2009, amended on 12 December 2013, amended on 3 February 2015 and amended on 17 October 2017.
533.
For a detailed discussion on Tax Circular 698, see Shen (2015), pp. 75–87.
534.
Art. 6 Tax Circular 698.
535.
Shen (2015), p. 78.
536.
Ibid, pp. 80–81.
537.
See Sect. 5.3.2.2.1.
538.
Teichmann (2014), p. 240.
539.
Ibid, p. 240.
540.
Meyer (2016), p. 219.
541.
Art. 2 M&A Provisions.
542.
Art. 6 M&A Provisions.
543.
Art. 2 Company Law; Du (2014), p. 335; Werthwein (2010), p. 17; Bu (2017), p. 191. Additionally, see Sect. 4.1.3.2.
544.
Art. 63 FIPE Provisions. Additionally, see Sect. 9.3.1.2.
545.
Wolff (2015), pp. 159–160.
546.
Mahony (2015), p. 59.
547.
Ibid, pp. 59–61.
548.
Tu (2010), p. 191.
549.
Ibid, p. 183.
550.
PRC Security Law (中华人民共和国担保法), adopted at the 14th Session of the Standing Committee of the 8th National People’s Congress on 30 June 1995 and effective from 1 October 1995.
551.
Arts. 63–81 Securities Law.
552.
PRC Property Law (中华人民共和国物权法), adopted at the 5th Session of the 10th National People’s Congress on 16 March 2007 and effective from 1 October 2007.
553.
Tu (2010), p. 184.
554.
Art. 178 Property Law.
555.
Arts. 208–222 Property Law, Arts. 223–229 Property Law.
556.
Arts. 1204–1259 BGB, Arts. 127–1296 BGB.
557.
Art. 223 Para. 4 Property Law.
558.
Art. 223 Para. 7 Property Law.
559.
See Sect. 7.1.2.1. Regarding the discussion what constitutes the objective of a pledge under German partnership law, see Schmidt (2002), p. 1327.
560.
Li (李飞) (ed) (2006), p. 117.
561.
Art. 229 Property Law.
562.
Tu (2010), p. 211.
563.
Ibid, p. 211.
564.
Ibid, p. 212.
565.
Li (李飞) (ed) (2006), p. 38.
566.
Ibid, p. 38.
567.
Ibid, p. 38.
568.
Art. 24 Para. 2 1997 PEL.
569.
Ye (2002), p. 111.
570.
Li (李飞) (ed) (2006), p. 118.
571.
See Sect. 7.1.2.2.
572.
Tu (2010), p. 212.
573.
Art. 224 Property Law.
574.
Ye (2002), p. 110.
575.
Art. 219 Para. 1 Property Law.
576.
Art. 219 Para. 2 Property Law.
577.
Art. 219 Paras. 2 and 3 Property Law.
578.
See Sect. 9.4.2.2.
579.
See Sect. 9.4.2.2.
580.
Art. 6 FIE Changes in Equity Provisions.
581.
See Sect. 9.4.2.1.
582.
Mahony (2015), p. 44.
583.
Ibid, pp. 44–45.
584.
See Sect. 9.4.2.
585.
See Sect. 9.4.2.2.
586.
See Sect. 9.4.2.3.
587.
See Sect. 9.4.2.2.
588.
See Sect. 9.2.1.2.1.
589.
Binz and Sorge (2018), p. 266.
590.
See Sect. 9.4.2.6.
591.
See Sect. 8.4.3.
592.
See Sect. 9.4.2.7.
593.
See Sect. 9.3.2.2.
594.
See Sects. 9.3.2.1.1 and 9.3.2.1.3.
595.
See Sect. 9.3.2.1.2.
596.
See Sect. 9.3.2.2.
597.
See Sect. 9.4.3.
598.
See Sect. 9.2.2.

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Stephan Kuntner

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Kuntner, S. (2021). Transferable Ownership Interest. In: China’s Foreign-Invested Limited Partnership Enterprise. China-EU Law Series, vol 7. Springer, Cham. https://doi.org/10.1007/978-3-030-54181-1_9

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