case Mainland China English summary

Wan Jiayu v. Lijiang Hongrui Hydropower: Articles Amendment and Shareholder Status

万家裕诉丽江宏瑞水电开发有限公司股东资格确认纠纷案

A shareholder-status dispute holding that amended articles take internal effect once shareholders reach the amendment agreement; business registration is a publicity condition, not an internal validity condition.

Brief English Introduction

Wan Jiayu is useful for separating the internal validity of amended articles from the public effect of registration. The court treated shareholder consensus on the amendment as the decisive internal moment, while registration served the publicity function and affected reliance by good-faith third parties.

Use It For

Use this case to ask why initial articles and later amendments are treated differently, and how company registration allocates risk between insiders and outsiders.

Teaching Notes

The case is a clean bridge between company autonomy, articles drafting, and the evidentiary role of the public register.