judicial interpretation Mainland China English summary

SPC Draft Company Law Interpretation: Ultra Vires Resolutions

最高人民法院公司法司法解释(征求意见稿)中的越权决议规则

Draft rule distinguishing resolutions that exceed statutory organ powers, which may be invalid, from resolutions that merely violate the articles, which generally create revocation rather than invalidity grounds.

Brief English Introduction

The draft interpretation would make statutory organ boundaries harder to contract around. A shareholders’ meeting or board resolution that exceeds legal powers may be invalid, while a resolution that only conflicts with the articles is usually handled through revocation.

Use It For

Use this record to update the resolution-validity discussion after the 2023 Company Law.

Teaching Notes

Because this is still a draft, students should treat it as evidence of judicial direction rather than binding law.