09
2026-02
In the enforcement proceedings of commercial disputes involving companies, the situation where “the company has no assets available for enforcement” has become a common obstacle to creditors’ efforts to recover their debts. Whether or not shareholders have fulfilled their capital contribution obligations directly determines whether creditors can bypass the company’s separate legal personality and hold shareholders personally liable. In practice, some shareholders have used capital verification reports and audit reports as “evidentiary shields” to claim that they have already fulfilled their capital contribution obligations; moreover, some even attempt to evade their contribution responsibilities by transferring equity, making it extremely difficult for creditors to protect their rights. Recently, the Supreme People’s Court issued Civil Ruling No. (2024) Supreme Law Min Shen No. 5990, clearly establishing a judicial rule: Even if a capital verification report or an audit report formally indicates that a shareholder has made the required capital contribution, if in reality the shareholder has not actually fulfilled the obligation, the original shareholder shall remain liable for the contribution. If the new shareholder knew or should have known about this fact, they too shall be added as an enforced party and bear joint and several liability together with the original shareholder. This ruling not only clarifies the boundaries of the evidentiary force of capital verification and audit reports but also provides clear guidance on the substantive review of shareholders’ capital contribution obligations and the succession of liabilities in equity transfers. It offers crucial judicial guidance for creditors seeking to enforce their claims in the execution process and sets out clear legal red lines for shareholders when fulfilling their capital contribution obligations and when acquiring equity. This article, drawing on typical cases from the Supreme Court and relevant legal provisions, will provide an in-depth analysis of the core essence of this judicial rule, its practical application, and key risk-prevention measures, thereby offering professional legal reference for market participants.
2026-02-09
05
2026-02
When the debtor fails to perform its debt obligations, after the guarantor has stepped in to make payment on behalf of the debtor, the guarantor is entitled by law to seek reimbursement from the principal debtor. This right of reimbursement is explicitly stipulated in Article 700 of the Civil Code: “After a guarantor assumes guarantee liability, unless otherwise agreed by the parties, the guarantor shall have the right to seek reimbursement from the debtor within the scope of its assumed guarantee liability and shall enjoy the rights that the creditor has against the debtor...” In practice, issues may arise in the guarantor’s pursuit of reimbursement following payment, including distinctions among different types of guarantees, defenses that the debtor might raise, handling procedures when the debtor is unable to repay or even goes bankrupt, the scope of reimbursement and burden of proof, as well as matters related to the signing of a reimbursement agreement between the parties. The author will analyze these issues in light of judicial practice and highlight specific practical points for consideration.
2026-02-05
05
2026-02
Perspective | Case-Based Explanation: Procedures for Reversing Administrative Penalty Decisions
Zhen, Jia, and others were discovered by public security authorities while playing mahjong. The authorities questioned them and seized the mahjong tiles and chips found at the scene. Upon investigation, it was determined that the actions of Zhen and the others constituted gambling, and the public security authorities imposed administrative penalties on them in accordance with the law. Subsequently, Zhen, Jia, and others filed an application for administrative reconsideration. The reconsideration authority issued a decision upholding the original administrative ruling. Dissatisfied with both the administrative reconsideration decision and the penalty decision, Zhen and Jia named both the penalty-imposing authority and the reconsideration authority as co-defendants in an administrative lawsuit, requesting the court to revoke, in accordance with the law, both the “Administrative Penalty Decision” and the “Administrative Reconsideration Decision.” Zhen and Jia have entrusted me to represent them in this administrative litigation.
2026-02-05
04
2026-02
Against the backdrop of the interplay between the principle of state ownership of mineral resources and the practical development of the mining industry in Shandong Province, precisely defining the boundaries between criminal and non-criminal acts—and between different types of criminal offenses—constitutes not only a key factor in maintaining order in the mining market but also a central focus for law firms to help enterprises operate in compliance and ensure judicial fairness. This article, drawing on current legal provisions, judicial interpretations, and local judicial practice, systematically examines the core issues involved in identifying the crime of illegal mining from multiple perspectives, including the evolution of the crime’s definition, analysis of its constituent elements, and resolution of practical challenges.
2026-02-04
04
2026-02
After the official implementation of the island-wide customs closure operation in Hainan, the region’s unique policy advantages—“zero tariffs, low tax rates, and a simplified tax system”—continue to unfold, making Hainan a core hub for domestic enterprises engaging in cross-border investments. However, according to statistics released by the Hainan Provincial Department of Commerce in 2025, the number of rejected applications for overseas direct investment (ODI) filings throughout the year reached as many as 312. Among these, the most common issues centered on two key areas: non-compliance with investor qualification requirements and improper structural design. Many enterprises, eager to seize the policy benefits, have rushed into cross-border investments without adequately considering the compliance details involved in the filing process. As a result, their investment projects have stalled, outbound capital flows have been hampered, and some enterprises have even faced administrative penalties, incurring substantial compliance costs.
2026-02-04
04
2026-02
Perspective | The “Break” and “Protection” of Ecological Rights in Bankruptcy Proceedings
As ecological civilization construction has been elevated to the level of a national strategy, the issue of protecting ecological rights and interests in bankruptcy proceedings has become increasingly prominent. Corporate bankruptcy not only involves the satisfaction of creditors’ claims but also concerns the implementation of responsibilities for pollution control and ecological restoration. Based on China’s current legal framework and judicial practice, this article systematically analyzes the conflicts and coordination mechanisms surrounding ecological rights and interests in bankruptcy proceedings. First, the article distinguishes between two main types of ecological rights and interests held by bankrupt enterprises: existing environmental pollution issues and ecological liabilities arising from policy-driven shutdowns. Subsequently, it reviews recent judicial policies and typical cases, summarizing the current protection models—represented by the recognition of common benefit debts, the coordinated mechanism between government and courts, and proactive early warnings by bankruptcy administrators. The article further explores the appropriate positioning of ecological rights and interests within the bankruptcy liquidation hierarchy, demonstrating the legitimacy of their priority over ordinary creditor claims. It also proposes establishing long-term mechanisms such as environmental liability insurance and ecological conservation funds. Finally, the article emphasizes that the priority status of ecological claims should be further clarified in bankruptcy law, and through a diversified approach integrating “legal, administrative, and market” measures, we can achieve a win-win outcome of maximizing the value of bankruptcy assets while effectively protecting the ecological environment.
2026-02-04
04
2026-02
Perspective | A Review and Study of Interest Issues in Private Lending
As an important form of informal financial activity, private lending is widely prevalent in the flow of funds between individuals and between individuals and enterprises. However, disputes over interest rates frequently arise, affecting both the rights and interests of the parties involved and disrupting the socio-economic order. This article provides a systematic review and analysis of the legal issues surrounding “interest” in private lending. Based on lending scenarios between individuals and between individuals and enterprises, it examines separately the validity of interest agreements, the upper limit on interest rates, methods of interest payment, late-payment interest and liquidated damages, restrictions on compound interest, treatment of cases where no interest has been agreed upon, special rules applicable to corporate lending, as well as the identification and consequences of “high-interest relending.” The article also draws on relevant case law to analyze judicial approaches. In addition, it summarizes practical operational recommendations and risk warnings, aiming to provide useful guidance for both lenders and borrowers in private lending transactions.
2026-02-04
04
2026-02
The plaintiff is a student at a vocational secondary specialized school. While attending school, he was slapped twice by a certain individual, Zhang San, a classmate not involved in the case. The plaintiff believes that this act caused him harm and therefore filed a lawsuit against the school and the individual, seeking compensation. The defendant, the individual in question, has retained our firm’s lawyers to represent him in this case.
2026-02-04
04
2026-02
Article 24, paragraph 2 of the “Interpretation by the Supreme People’s Court on Several Issues Concerning the Application of the Company Law of the People’s Republic of China” (Draft for Soliciting Comments) provides: “In the course of enforcing monetary claims, if a corporate creditor applies to change or add shareholders whose capital contribution deadlines have not yet arrived as the enforced parties, the people’s court shall rule to reject the application for such change or addition and inform the applicant that it may file a separate lawsuit. If the applicant for enforcement is dissatisfied with this ruling, it may apply for a review to the higher-level people’s court; however, the people’s court will not accept a direct lawsuit challenging the enforcement action.” Although this provision has not yet officially taken effect, in the author’s recent handling of cases involving the addition of shareholders whose capital contribution deadlines have not yet arrived as enforced parties, the spirit of this provision has already influenced some judges’ determinations regarding whether such shareholders can be added as enforced parties. This article, drawing on case analyses from the Supreme People’s Court and other sources, examines the current judicial divergences in cases involving the addition of shareholders whose capital contribution deadlines have not yet arrived as enforced parties, as well as the new developments in jurisdiction over cases where shareholders are sued directly for accelerating the maturity of their capital contributions.
2026-02-04
04
2026-02
Perspective | How the Digital Yuan (e-CNY) Is Integrating Into the Digital Economy
The “Announcement on Interest Payment for Digital RMB” announced that, starting January 1, 2026, interest will be paid on the balances held in eligible digital RMB wallets. The “Action Plan on Further Strengthening the Digital RMB Management Service System and Related Financial Infrastructure Construction,” issued by the People’s Bank of China, will officially come into effect on January 1, 2026, clearly defining the measurement framework, management system, operational mechanisms, and ecosystem for the next-generation digital RMB. As a product of the integration of finance and technology, the digital RMB is an inevitable outcome of the development of the digital economy—and also the blueprint outlined in the proposals of the 15th Five-Year Plan. To “accelerate the building of a strong financial nation,” we must “steadily develop the digital RMB.”
2026-02-04
Zhongcheng Qingtai Jinan Region
Address: Floor 55-57, Jinan China Resources Center, 11111 Jingshi Road, Lixia District, Jinan City, Shandong Province
