practice note Mainland China English original

Company Law Draft Judicial Interpretation: Shareholder Agreements and Articles of Association

Explains draft judicial interpretation article 12 on shareholder agreements, articles of association, and when private shareholder agreements may affect the company.

Brief English Introduction

This article explains the draft rule that shareholder agreements normally bind only the signatory shareholders, with limited exceptions for unanimous consent, statutory authorization, or formal company ratification. It is directly useful for the articles-versus-shareholder-agreement problem.

Use It For

Use it with the formation-agreement/articles-priority record.

Teaching Notes

The article is also useful for asking whether confidential shareholder agreements should ever bind later shareholders.