Viewpoint. The legal nature and effect of the transfer and repurchase business model of stock income rights.

Introduction In recent years, the use of stock income rights transfer and repurchase as a capital financing model of the case shows an increasing trend, the business model application scenario is usually the financier due to stock restrictions or other reasons, it is not appropriate or can not directly transfer the stock, and instead to the underlying stock corresponding to the stock income rights as the subject, signing agreements on the transfer and repurchase of stock proceeds with funders (usually financial institutions or financial institutions such as trust companies, securities companies, asset management companies), supplemented by security measures such as stock pledges, to achieve the purpose of financing by assuming the obligation to repurchase the underlying stock proceeds at the agreed amount at the agreed time or when the agreed conditions are triggered. At present, China's laws and regulations for the business model has no clear provisions to be stipulated, the lack of a unified standard of identification, there are different views in practice, the author through the search of recent typical cases, a probe into the legal nature and effectiveness of the business model, for the reader's reference. Basic architecture and related elements of the business model (I) basic architecture The basic structure of the stock yield transfer and repurchase business model can be considered to include two stages: 1. Investment stage: the investment direction to the financier to pay the transfer price of the stock income right, the financing direction to the investor to transfer the stock income right; 2. Investment recovery stage: The financing direction buys back the right of return to the investor and pays the repurchase to the investor. (II) other relevant elements According to existing cases, in the stock income right transfer and repurchase business, in addition to the basic elements such as transfer price, repurchase price, investment period, etc., there are usually several other relevant elements, such: 1. Credit enhancement measures: usually a pledge of the underlying stock, as well as joint and several liability guarantees provided by the owner of the stock and its concerted action or related parties, and may also include other forms of security such as real estate mortgages. 2. Liquidated damages: usually based on the total amount of the transfer or overdue payments, multiplied by a fixed daily or annual interest rate. It is worth noting that there are different agreement methods for the amount of repurchase payable by the financier. In simple terms, it can be divided into fixed mode (based on the transfer price, floating according to the fixed repurchase premium rate, and determining the amount of repurchase) and floating mode (including but not limited to: the higher of the fixed premium rate and the average price of the 20 trading days before the repurchase date, or in addition to the fixed repurchase price, the total proceeds of the stock during the transfer of the stock income right shall be owned by the investor, etc.). case analysis Due to the stock income right transfer and repurchase business is in the ascendant, and the current laws and regulations lack of clear provisions, the number of relevant judicial precedents is relatively limited. Through the author's search and analysis, the dispute over the validity of the contract under the business model is relatively small, and the court's views are basically the same, that is, unless there is a violation of relevant laws and administrative regulations (usually in the field of securities capital market), as long as the contract is the true intention of both parties, that is, a positive attitude towards the validity of the contract. However, the court's views on the determination of the legal nature of the contract are different, and the determination of the legal nature has a direct impact on the realization of the purpose of the transaction, such as whether the repurchase premium and liquidated damages are subject to the restrictions on the upper limit of private lending interest rates in the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases. The (I) is based on the principle of penetrating judicial review and is determined to be a loan or loan contract. 1.(2017) Supreme Law Minzong No. 907 (Civil Judgment of Second Instance on Contract Disputes between Beijing Tianyue Investment Development Co., Ltd. and Anxin Trust Co., Ltd.) Transaction Structure: On September 18, 2013, Tianyue Company and Anxin Company signed the Agreement on Transfer and Repurchase of Equity Income Rights, agreeing that Anxin Company shall use its entrusted trust property to transfer the equity income rights corresponding to 100% equity of Tianyue Company held by Tianyue Company at a transfer price of 0.3 billion yuan. The transfer period is from September 18, 2013 to September 17, 2015. Upon the expiration of the transfer period, Tianyue Company shall return all the transfer money and pay the repurchase premium. Premium = base price x 13.5 per cent/year x transfer term start date to transfer expiry date/360. Credit enhancement measures: 1. Wang Junying and Huang Beihai provide joint and several guarantee liability for all debts under the equity income transfer contract; 2. Tianyue Company provides mortgage guarantee for all debts under the above equity income transfer contract with the land use right and construction in progress of Tianyu New Town Building, a farm located in the eastern suburb of Beijing, and has gone through mortgage registration. Validity of the contract: 1. Tianyue Company financed funds by signing the Equity Income Right Transfer and Repurchase Agreement with Anxin Company. The purpose of the contract is legal and does not belong to the contract invalid situation of "concealing illegal purpose in legal form" stipulated in Item 3 of Article 52 of the Contract Law; 2. Tianyue Company's proof is not enough to prove that the case involves malicious collusion, arbitrage of funds from financial institutions and usury on-lending, there is no violation of the provisions of Article 43 of the Commercial Banking Law on banks not to engage in trust investment; 3. It cannot be proved that the business under the "Equity Income Right Transfer and Repurchase Agreement" in this case was established by Shengjing Bank Beijing Branch with the property that is not allowed to establish a trust, thus violating the relevant provisions of the Trust Law; 4. There is also no evidence to prove that the Agreement on the Transfer of Equity Income Rights and Repurchase is invalid in the case of "violation of the mandatory provisions of laws and administrative regulations" as stipulated in Article 52, paragraph 5, of the Contract Law. In summary, the agreements involved in the case are the true intentions of the parties, and they are established in accordance with the law and have legal effect. The nature of the contract: the people's court shall make a comprehensive judgment on the nature of the civil contract according to the true intention of the parties reflected in the terms of the contract, combined with the real purpose of signing the contract and the actual performance of the contract. The "Equity Income Right Transfer and Repurchase Agreement" formally conforms to the "buy-and-sell" model stipulated in the "Measures for the Administration of Trust Companies", but according to the specific terms and the actual performance of the agreement, Anxin Company has no real intention to buy the equity income right involved in the case and bear the corresponding risks. First, Anxin only indirectly obtains the underlying equity income and does not participate in the management of the underlying equity. Second, although the agreement stipulates that Anxin has the right to obtain the equity income of Tianbiao, the agreement also stipulates that Tianyue shall not distribute profits in any form during the performance period, and the fact that the underlying equity is pledged to Anxin also limits the possibility of realizing the income of the underlying equity. Third, there is no proof that the transfer consideration of the underlying equity income right agreed in the agreement is in line with the market value, and the consideration of the return of the underlying equity income right is directly increased by a fixed proportion of the premium on the basis of the purchase consideration paid by it, and Anxin does not bear the risk during the period of buying the underlying equity income right. In summary, the Equity Income Rights Transfer and Repurchase Agreement is not, in essence, a "buy-back" contract as stipulated in the Measures for the Administration of Trust Companies. According to the specific stipulations of the Agreement on Transfer and Repurchase of Equity Income Rights and the fact that Tianyu Company, Wang Junying and Huang Beihai provided guarantee for Tianyue Company to perform the agreement, the main contract purpose of Tianyue Company is to finance the capital from Anxin Company, and the main contract purpose of Anxin Company is to collect relatively fixed capital income from Tianyue Company, the court held that the real purpose of the transaction between the parties was to finance the money in the name of the price by selling and then buying back. Since the "Agreement on Transfer of Equity Income Rights and Repurchase" involved in the case was not a famous contract stipulated in the Contract Law, the first instance judgment was handled according to the nature of the agreement with reference to the relevant provisions of the most similar loan contract in the sub-rules of the Contract Law. 2.(2019) Shaanxi Minzong No. 699 (Zeng Huijing, Cai Sixia, Shaanxi International Trust Co., Ltd. and Zhuang Min, Yu Cuifeng Business Trust Dispute Second Instance Civil Judgment) Transaction Structure: On March 6, 2017, Shaanxi State Investment and Cai Sixia signed the "Stock Income Right Transfer Contract", agreeing that Shaanxi State Investment will transfer the income right of 1.5 million restricted shares of Baoqianli Company held by Cai Sixia with trust funds, and Cai Sixia will pay the income right of the shares as agreed, with an interest rate of 8%/year. Credit enhancement measures: stock pledge, joint and several liability guarantee. Contract validity: The contract is valid. First of all, there is no invalidity of the contract that "covers up illegal purposes in a legal form"; secondly, the Trust Contract of Shaanxi International Investment Corporation confirms that its funds are derived from the trust funds delivered by the Federal Reserve Securities Huixiang No. 1 Collective Asset Management Plan represented by the principal Federal Reserve Securities, and there is no violation of Article 43 of the Commercial Bank Law that banks are not allowed to engage in trust investment. The nature of the contract: the transaction is the trust company after the establishment of the fund trust, to raise the trust funds to transfer the right to the income of specific assets, belongs to the trust company after the funds raised in accordance with the law, the resulting dispute should not be recognized as a business trust dispute. The transaction structure in this case is such that Shaanxi Guotou does not have to bear any risk of stock income rights, even if the income is zero, it can obtain a fixed income through repurchase. In summary, the main purpose of Cai Sixia's contract is to finance funds from Shaanxi Guotou, the main purpose of Shaanxi Guotou's contract is to collect relatively fixed capital income from Cai Sixia, the real purpose of the transaction between the two sides is to finance funds in the name of price by selling and then buying back. The Contract for the Transfer of Stock Income Rights in the Case is not a well-known contract under the Contract Law, and according to the nature of the agreement and the true intention of the parties, it should be handled in accordance with the relevant provisions of the loan contract in the sub-rules of the Contract Law. (II) identified as a trust legal relationship, or clearly defined not as a private lending legal relationship 1.(2016) Supreme Law Minzong No. 231 (Civil Judgment of Second Instance on Business Trust Dispute between Minmetals International Trust Co., Ltd. and Guangxi Nonferrous Metals Group Co., Ltd.) Transaction structure: In 2014, Minmetals Trust and Nonferrous Metals Company signed the Equity Income Rights Transfer and Repurchase Contract, stipulating that the Nonferrous Metals Company will transfer 87.37 of its equity income rights of the recycled metal company to the trust company. The trust company accepts the equity income rights with the trust funds raised under the trust company-Nonferrous Metals Company Equity Income Rights Investment Collective Fund Trust Plan initiated and established by the trust company, the transfer price is RMB 0.5 billion. After the trust company acquires the specific equity income right, the non-ferrous metal company repurchases all the specific equity income right and pays the repurchase price in accordance with the contractual period. Contract validity: The contract is valid. Nature of the contract: According to the trust company-non-ferrous metal company equity income right investment pooled fund trust plan, the trust company and the off-the-case principal formed a trust legal relationship; according to the Repurchase Contract, the trust company and the non-ferrous metal company formed a legal relationship between the equity income right resale repurchase. According to the trust industry regulatory provisions such as the Measures for the Administration of Trust Companies and the Measures for the Administration of Collective Funds Trust Plans of Trust Companies, under specific trust plans, trust companies may adopt trust fund management models such as "buy-and-sell. The trust company manages the trust funds by means of equity income right transfer and repurchase, and issues the corresponding trust plan, which is different from the trust loan business. Article 2.1 of the Repurchase Contract states: "The right to the proceeds of a particular asset acquired by the Trust and all proceeds generated by it are attributed to the trust property." The agreement states that any income generated by a particular asset belongs to the trust company during the period in which the trust company acquires the right to income from a particular asset. Therefore, the trust's income is not fixed income and the repurchase price should be the minimum income. The business content of the contract is the normal business activities of the trust company. After the signing of the "repurchase contract" in this case, the trust company has fulfilled the filing procedures with its supervisory unit, the Qinghai Banking Regulatory Bureau, and the Qinghai Banking Regulatory Bureau has not put forward rectification opinions. The court of first instance found that the nature of the contract in this case was a business trust, which was not improper. The appellant's non-ferrous metals company's appeal that the contract in this case is a business trust is actually a loan cannot be established. In addition, neither the first nor the second instance of this case supported the defense and appeal request of the defendant non-ferrous metal company to adjust the liquidated damages (five ten thousandths of the overdue payment plus 10% of the transfer price). 2.(2020) E Min Zhong No. 524 (Civil Judgment of Second Instance on Disputes over Securities Repurchase Contracts of Tianfeng Securities Co., Ltd. and Foshan Zhongji Investment Co., Ltd.) Transaction Structure: On May 15, 2017, Zhongji Company and Tianfeng Securities signed the Stock Income Rights Transfer Contract, agreeing that Tianfeng Securities will transfer the 17 million shares of Oupu Company (stock code: 002711) held by Zhongji Company with entrusted funds, and Zhongji Company will pay the realization amount of the stock income rights according to the agreed amount within the agreed time, the payment date for the realization of the underlying stock income right is the date when Zhongji Company has paid the purchase price for the underlying stock income right for one year, that is, May 18, 2018. Zhongji Company agrees to pay the realization amount of the underlying stock income right at RMB 183000000 yuan ×(1 + return on stock income right investment [6.2] × actual number of days within the plan period/360). Credit enhancement measures: stock pledge guarantee, joint and several liability guarantee. Contract validity: The contract is valid. Nature of the contract: According to the trust company-non-ferrous metal company equity income right investment pooled fund trust plan, the trust company and the off-the-case principal formed a trust legal relationship; according to the Repurchase Contract, the trust company and the non-ferrous metal company formed a legal relationship between the equity income right resale repurchase. According to the trust industry regulatory provisions such as the Measures for the Administration of Trust Companies and the Measures for the Administration of Collective Funds Trust Plans of Trust Companies, under specific trust plans, trust companies may adopt trust fund management models such as "buy-and-sell. The trust company manages the trust funds by means of equity income right transfer and repurchase, and issues the corresponding trust plan, which is different from the trust loan business. Article 2.1 of the Repurchase Contract states: "The right to the proceeds of a particular asset acquired by the Trust and all proceeds generated by it are attributed to the trust property." The agreement states that any income generated by a particular asset belongs to the trust company during the period in which the trust company acquires the right to income from a particular asset. Therefore, the trust's income is not fixed income and the repurchase price should be the minimum income. The business content of the contract is the normal business activities of the trust company. After the signing of the "repurchase contract" in this case, the trust company has fulfilled the filing procedures with its supervisory unit, the Qinghai Banking Regulatory Bureau, and the Qinghai Banking Regulatory Bureau has not put forward rectification opinions. The court of first instance found that the nature of the contract in this case was a business trust, which was not improper. The appellant's non-ferrous metals company's appeal that the contract in this case is a business trust is actually a loan cannot be established. In addition, neither the first nor the second instance of this case supported the defense and appeal request of the defendant non-ferrous metal company to adjust the liquidated damages (five ten thousandths of the overdue payment plus 10% of the transfer price). 3.(2021) Jingmin Zhongzhong No. 367 (Civil Judgment of Second Instance on Contract Dispute between Shanghai Nuomu Investment Center (Limited Partnership) and Beijing Zhongrong Wenda Asset Management Co., Ltd.) Transaction Structure: On April 17, 2017, Shanghai Nomu and Zhongrong Wanda signed the "Stock Income Right Transfer and Repurchase Contract", which stipulates that Party A's holdings of Metano (stock code: 300038) limited sale period stock pair

2022-05-30

Case statement. Analysis of the impact of the value of the lease on the financial leasing business.

Introduction The value of the lease is the consideration of the legal relationship of the financial lease, in practice, the value of the lease affects the legal relationship of the financial lease, there are two main situations, one is low value high sale, one is high value low sale. Judicial practice on the two forms of financial leasing legal relationship of the determination and default adjustment of the dispute, the legal relationship as a loan will also affect the amount of claims and expand the risk of litigation collection, through a brief analysis of this article. The value of 1. lease affects the legal relationship of financial lease. (I) low value high selling Low-value high-selling means that the purchase price of the lease under the financial lease contract is significantly higher than the value of the lease under the contract. Low-value high-selling does not comply with Article 735 of the Civil Code: "A financial lease contract is a contract in which the lessor purchases the leased property from the seller according to the lessee's choice of the seller and the leased property, provides it to the lessee for use, and the lessee pays the rent." The financial and financing attributes of the legal relationship of the financial lease. In this case, the lessor's choice of lease is not sufficient to secure the rental claim, but rather to attach the security of its claim to the security contract. In practice, the agreement on the valuation, sale and residual value of the leased property in this case violates the rules of the legal relationship of financing, and the situation is mostly recognized as a legal relationship of lending rather than a legal relationship of financial leasing. Reference case 1, Tianjin municipal construction and development co., ltd., Tianjin Shengli hotel co., ltd. financial lease contract dispute second instance civil judgment (2020) supreme law min zong 1154 Referee's view: After-sale lease back refers to the lease itself is owned by the lessee, the lessee in order to achieve its financing purposes, the ownership of the property transferred to the lessor, and then leased back from the lessor of the transaction. In this case, the transfer price of the leased property (Shengli Hotel) under the Lease Back Sales Contract is only 350000000 yuan, which is obviously lower than its actual value of 601728000 yuan. Therefore, the court of first instance found that there is no real financial leasing relationship between Great Wall Leasing Company, Datong Leasing Company and Shengli Hotel, and it is not improper to establish a legal relationship of private lending in essence. The court has no objection to this. (II) high value low buy High-value low-buy is the purchase price of the lease under the financial lease contract is significantly lower than the value of the lease. There is a dispute in judicial practice on whether the high value and low purchase agreed in the financial lease contract establishes the legal relationship of financial lease. Reference case 2, ICBC Financial Leasing Co., Ltd., Tongling Dajiang Investment Holdings Co., Ltd. financial leasing contract dispute retrial civil judgment (2018) Supreme Famin re -373. Referee's opinion: The purchase price of the leased property in the Financial Leasing Contract is much higher than the actual value of the leased property involved in the case. As a professional financial leasing institution, ICBC purchases the leased property at a price more than ten times higher than the market value. Obviously, it deviates from the principle of equivalent exchange of sales contracts, and its rent does not reflect the true value of the leased property. The original trial found that the relationship between ICBC and Warner was an inter-enterprise lending relationship and there was nothing wrong with it. Reference case 3, case name: Jiangsu reinsurance financial leasing co., ltd., Nanjing international leasing co., ltd., Anhui hengshun fangzhou shipbuilding industry co., ltd. ship financial leasing contract dispute second instance judgment case no:(2017) e min zong 1057 Referee's Opinion: Although the cost of the ship involved is 171 million yuan, which is much higher than the price of the Sales Contract of 60 million yuan, the sales contract in the financial lease is different from the sales contract of the general subject matter. The price of the subject matter of the sales contract in the financial lease is usually determined by reference to the financing amount, not the actual value of the subject matter. After the expiration of the lease term and the buyer recovers the full rent, the buyer usually transfers the ownership of the lease to the lessee at a very low nominal price, so the plaintiff in this case purchased the 'Hengshunda 191 'round at a price of 60 million yuan in line with the practice of the financial leasing industry, legal and effective. The judgment point of reference case 2 is different from that of reference case 3. The point of reference case 2 is that low-value and high-value purchase obviously deviates from the principle of equivalent exchange in the sales contract, and the rent stipulated in the financial lease contract cannot obviously reflect the actual value of the leased property. Because the leased property cannot be purchased according to the purchase price of the leased property, it does not conform to the financing property of the financial lease contract and belongs to the legal relationship of borrowing. The point of view of case 3 is that the lease of a financial lease contract is usually determined by reference to the amount of financing, not by reference to the actual value of the subject matter. This paper holds that the lease agreed in the financial lease contract is a guarantee measure for rent claims, and high-value low-buy is common in the after-sale lease back business, according to the Supreme People's Court on the application.<中华人民共和国民法典>有关担保制度的解释》第六十五条“当事人请求参照民事诉讼法“实现担保物权案件”的有关规定，以拍卖、变卖租赁物所得价款支付租金的，人民法院应予准许。”法律允许承租人通过申请评估拍卖租赁物的方式清偿租金债务，出租人未受偿的租赁物处置款归承租人，因此高值低买不违反等价交易的法律原则。另外，租赁物购买价款并非参照租赁物的实际价值，而是根据融资金额确定。租赁物、抵押物等担保措施的抵押率按照市场规律也各不相同，有的动产（设备）、不动产抵押率可以达到30%，因此高值低买不影响认定融资租赁法律关系。   （三）租赁物低值高卖的参考标准   对于是否属于明显高价及如何确定租赁物的价值，根据《融资租赁司法解释》第十二条规定，诉讼期间承租人与出租人对租赁物的价值有争议的，人民法院可以按照融资租赁合同的约定确定租赁物价值；融资租赁合同未约定或者约定不明的，可以参照融资租赁合同约定的租赁物折旧以及合同到期后租赁物的残值确定租赁物价值。承租人或者出租人认为依前款确定的价值严重偏离租赁物实际价值的，可以请求人民法院委托有资质的机构评估或者拍卖确定。另据《最高人民法院关于适用<中华人民共和国合同法>Article 19 of the (II) for Interpretation of Certain Issues (currently invalid) stipulates that for the "obviously unreasonable low price" stipulated in Article 74 of the Contract Law, the people's court shall use the judgment of the local general operator of the transaction, and refer to the transaction At the time of the transaction, the price department guide price or market transaction price, combined with other relevant factors to confirm it. If the transfer price does not reach the guiding price of the trading place at the time of the transaction or the 70% of the market transaction price, it can generally be regarded as an obviously unreasonable low price; if the transfer price is higher than the local guiding price or the 30% of the market transaction price, it can generally be regarded as an obviously unreasonable high price. The adjustment standard of 2. on the liability for breach of contract in the legal relationship of financial leasing in judicial practice. This paper summarizes the adjustment methods of the liability for breach of contract such as interest on overdue rent occupation and default payment in the case of overdue rent repayment by the lessee in practice. Specifically. (I) Jinan Court Financial Leasing Legal Relationship The adjustment method of the lessee's liability for breach of contract such as interest on overdue rent occupation and liquidated damages in the case of overdue rent repayment. 1-Before 2020 Case 1: First Instance of Disputes over Financial Leasing Contracts between Cathay Pacific Leasing Co., Ltd. and Gaoqing Juxin Infrastructure Investment Co., Ltd. (2020) No. 21 Judgment of Lu 01 Minchu The hospital believes that "the overdue rent occupied interest required by Cathay Pacific Company to be paid by Juxin Company is calculated according to the annual lease interest rate of 7%, and the liquidated damages are calculated according to the annual interest rate of 18%. In view of the nature of overdue rent occupied interest also belongs to liquidated damages, the annual interest rate of 25% of the total sum of the two has exceeded the stipulation of 24% of the maximum annual interest rate of the total sum of private financing expenses, therefore, in accordance with the provisions of the first paragraph of Article 29 of the (II) of Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the the People's Republic of China Contract Law, the Court shall adjust the liquidated damages in accordance with the law, and adjust the interest on overdue rent occupation and liquidated damages to 24% of the annual interest rate. As a result, Juxin Company shall pay Cathay Pacific Company a total of 3875771.88 yuan for overdue occupancy interest and liquidated damages as of November 25, 2019. Subsequent overdue rent occupancy interest and liquidated damages shall be calculated from November 26, 2019 to the actual payment date based on 70454294.66 yuan (due unpaid rent 30668574.96 yuan + unexpired rent 39785718.7 yuan + nominal price 1 yuan)." The judgment of the court: 1. Gaoqing Juxin Infrastructure Investment Co., Ltd. shall pay Cathay Pacific Leasing Co., Ltd. all due and unpaid rent of 30668574.96 yuan, undue rent of 39785718.7 yuan and nominal price of 1 yuan within 10 days from the effective date of this judgment, totaling 70454294.66 yuan; 2. Gaoqing Juxin Infrastructure Investment Co., Ltd. shall pay Cathay Pacific Leasing Co., Ltd. a total of 3875771.88 yuan of overdue interest and liquidated damages calculated by Cathay Pacific Leasing Co., Ltd. to November 25, 2019 and subsequent overdue interest and liquidated damages within 10 days from the effective date of this judgment (based on 70454294.66 yuan, at an annual interest rate of 24%, from November 26, 2019 to the date of actual settlement); Case 2: Dispute over Financial Leasing Contracts between Guotai Leasing Co., Ltd. and Ruzhou Transportation Investment and Development Co., Ltd., Ruzhou Education Investment and Development Co., Ltd. (2020) Lu 01 Minchu No. 2210 The Court believes that the "Financial Lease Contract" stipulates that the interest on overdue rent shall be calculated based on the unpaid amount payable, based on the 50% increase in the five-year benchmark loan interest rate of the People's Bank of China during the same period when this contract is overdue and the actual number of days occupied until the date of full payment. The liquidated damages shall be calculated based on the amount of unpaid amount payable by the overdue days multiplied by five ten thousandths of the unpaid rent until the date until the date, as the standard for calculating interest and liquidated damages for overdue rent occupancy significantly exceeds the standard of 24% of the annual interest rate, the unpaid rent due as of June 17, 2020 is calculated as $35087475, and the liquidated damages and interest for overdue rent occupancy calculated at 24% of the annual interest rate is calculated as $3228948, the court ruled that the defendant Ruzhou Transportation Investment Development Co., Ltd. should pay rent 114818276.15 yuan, liquidated damages and interest on overdue rent to the plaintiff Guotai Leasing Co., Ltd. within 10 days from the effective date of this judgment (liquidated damages are based on 114818276.15 yuan, calculated at the standard of 5/10000 per day from June 18, 2020 to the actual payment date; The interest on overdue rent is based on 114818276.15 yuan, from June 18, 2020 to the actual payment date, calculated at a 50% increase in the quoted market rate for five-year loans published by the LIBOR, and the amount of the above two combined is limited to the standard rate of 24% per annum) The above two judgments adjusted the starting point of interest on overdue rent occupancy and liquidated damages to the lessee's overdue date, adjusting the standard annual interest rate of 24%. 2 After 2021 Case 1, Jinding Leasing Co., Ltd., Daqing Jiachang Jingneng Information Materials Co., Ltd. and other financial lease contract disputes civil first instance civil judgment (2021) Lu 01 Minchu 1444 After the signing of the contract, Jinding Leasing Company fulfilled its obligation to pay the financing funds in accordance with the contract, and Jiachang Jingneng Company failed to fulfill its obligation to pay the rent in full and on time in accordance with the contract, which constituted a breach of contract. Jinding Leasing Company requires Jiachang Jingneng Company to pay the outstanding rent of 38.46 million yuan and the total amount of interest and liquidated damages for overdue rent up to May 31, 2021 of 27222065.45 yuan, which is in line with the contract and legal provisions, and our hospital supports it. Subsequent late payment interest and liquidated damages shall be based on 38.56 million yuan and shall continue to be calculated and paid from June 1, 2021 to the date of actual payment at four times the quoted interest rate of the loan market published by the National Interbank Lending Center. Jinding Leasing Company, without providing evidence to confirm its actual losses, demanded that the interest on overdue payments and liquidated damages be calculated at an annual interest rate of 30 per cent, which was obviously too high, the court does not support ...... The court ruled that the defendant Daqing Jiachang Jingneng Information Materials Co., Ltd. should pay the plaintiff Jinding Leasing Co., Ltd. the rent of 38.46 million yuan within 10 days from the effective date of this judgment, and the overdue payment interest and liquidated damages temporarily calculated to May 31, 2021 totaling 27222065.45 yuan; the subsequent overdue payment interest and liquidated damages shall be based on 38.46 million yuan from June 1, 2021 to the actual payment date, continue to calculate and pay according to four times the quoted interest rate of the loan market published by the National Interbank Funding Center; Case 2, Minsheng Financial Leasing Co., Ltd., Li Laiping Financial Leasing Contract Dispute Civil First Instance Civil Judgment (2021) Lu 0104 Minchu 8539 During the trial, the plaintiff made the second claim clear as 70187.76 yuan, which was composed as of February 27, 2022, with a penalty interest of 26945.77 yuan, a penalty of 43041.99 yuan and a retained purchase price of 200 yuan. In this regard, the Court believes that the amount of penalty interest and liquidated damages, both of which fall within the scope of liability for breach of contract, should be considered together. Combined with the situation of this case, the two are combined and calculated, taking into account many factors such as the actual performance of the contract, the car payment, the hard loss of people's livelihood finance, etc., it is determined as appropriate to take the date of the defendant's last repayment (that is, December 24, 2021) as the starting point, based on the rent still owed of 215209.95 yuan, and calculated according to 4 times the one-year loan market quotation interest rate published by the National Interbank lending Center in November 2020. As for the retained purchase money of 200 yuan claimed by the plaintiff, the plaintiff did not provide evidence to prove his claim, so this court does not support it... "The court ruled that 1. Li Laiping should pay the rent of 215209.95 yuan owed by Minsheng Financial Leasing Co., Ltd. within ten days from the effective date of this judgment; 2. Li Laiping to pay the economic losses of Minsheng Financial Leasing Co., Ltd. within ten days from the effective date of this judgment (based on the rent still in arrears of 215209.95 yuan, from December 24, 2021 to the date of actual payment, according to 2020 Calculated at 4 times the quoted interest rate of the one-year loan market announced by the National Interbank Lending Center in November); Overdue rent occupancy after 2021</中华人民共和国合同法></中华人民共和国民法典>

2022-05-25

Viewpoint | A brief analysis of the crime of illegally absorbing public deposits

The case of the crime of illegally absorbing public deposits is currently one of the most "hot" crimes in the field of criminal crimes, coupled with the "Criminal Law Amendment (11)" and the "Supreme People's Court's Interpretation on Several Issues Concerning the Specific Application of Laws in the Trial of Criminal Cases of Illegal Fund-raising" With continuous attention, the intention of cracking down and warning is obvious. This crime has various manifestations, from traditional private lending and cooperative investment to an innovative financial form integrated into the "Internet". Various models involving fund-raising may touch the legal red line of the crime of illegally absorbing public deposits. In judicial practice, it has been expanded to a "pocket crime" of illegal fund-raising crimes ". Combined with the practical experience of the crime of illegal absorption of public deposits, the author summarizes the common defense ideas for reference. 1. subjective argument Evaluation of (I) subjective intention The subjective aspect of the criminal suspect and defendant of the crime of illegally absorbing public deposits can only be constituted by direct intent. As long as the perpetrator has a profit-making purpose, it is not necessary to ask whether the benefit is actually obtained. According to the first paragraph of Article 4 of the opinions on handling criminal cases of illegal fund-raising in 2019, it can be seen that: "to determine whether the criminal suspect or defendant has the criminal intention of illegally absorbing public deposits, it shall be based on the evidence of the criminal suspect or defendant's employment, professional experience, professional background, training experience, administrative punishment or criminal investigation for similar acts, as well as the way of absorbing funds, publicity and promotion, contract materials, business processes, etc, combined with its confession, a comprehensive analysis and judgment." Although the above opinions have identified the key points of review that should be focused on, once combined with complex actual cases, the specific review will still become one of the focal points of controversy in practice. For defense lawyers, the assessment of subjective intent should be based on the performance of objective behavior, but also to avoid the error of purely objective attribution of loss results. The author believes that the following aspects should be judged: 1. Focus on examining the commonalities and differences of verbal evidence between the perpetrator and other suspects, witnesses and victims in the same case, and compare the contradictions to determine whether they have direct intent; 2. Conduct a comprehensive review of the perpetrator's past experience and background to determine his or her level of awareness of the act and infer whether the perpetrator knew or should have known; 3. Review the actor's job position and content to determine whether it can recognize the possibility of illegally absorbing public deposits; 4. Conduct a comprehensive analysis of the actor's post-event behavior and performance to confirm the subjective aspect of the behavior at the time from the side. Determination of (II) subjective purpose Because the amount of crimes involved in illegal fund-raising cases is particularly huge, in practice, there will be a qualitative dispute between the prosecution, defense and trial for the crime of fund-raising fraud and the crime of illegally absorbing public deposits, which is faced with many times in the cases handled by the author. The upper limit of the statutory sentence for the crime of fund-raising fraud is life imprisonment, while the upper limit of the statutory sentence for the crime of illegally absorbing public deposits is 15 years. In order to effectively protect the legitimate rights and interests of the defendant, the defender should accurately grasp the nature of the act-whether it has the purpose of illegal possession. Article 7 of the interpretation of the Supreme People's Court on Several Issues concerning the specific application of law in the trial of criminal cases of illegal fund-raising, which came into effect on March 1, 2022, is to stipulate the authenticity of project financing, the legitimacy of the use of funds, the certainty of the flow of funds, the legality of fund-raising methods, the attitude of return and the non-fraud of related acts. The author believes that the defender should focus on excluding the following situations: 1. Whether most of the funds involved in the case have not been used for production and operation activities, or whether they have been put into production and operation in name but have been withdrawn or transferred through various means; 2. The cost of using the funds is so high that there is no realistic possibility of paying all the principal and interest; 3. After receiving the funds, whether the actor is extremely irresponsible in making decisions on the use of the funds, resulting in a large funding gap; 4. The return of principal and interest is mainly done by borrowing new and repaying the old. The Debate of 2. Subject (I) Attaches Importance to Unit Crime The distinction between unit crime and individual crime (including natural person joint crime) is one of the important defense strategies in illegal fund-raising cases. For illegal fund-raising cases that may constitute unit crimes, the defender can establish the defense direction of unit crimes in a timely manner according to the needs, and according to the duration and number of illegal fund-raising carried out by the unit, the scale of funds, the flow of funds, the frequency, the investment of manpower and material resources, the proper operation of the unit, the impact and consequences of criminal activities and other factors, and realize the defense of light crime or innocence by legal means. Of course, the defender should pay attention to the fact that the new judicial interpretation has blurred the boundary between unit crime and individual crime, and the intention of this move should be specifically grasped. Distinction between (II) master and accomplice In the case of the crime of illegally absorbing public deposits, the status and role of each person in the case must be distinguished in order to reflect the adaptation of crime and punishment in sentencing. Generally speaking, the organization, planner, and leader of illegal fund-raising criminal activities, the main implementer and the main profit-takers, should be identified as the principal offender; for the secondary implementer who accepts the arrangement and instigation of others to carry out illegal fund-raising activities, or only provides The helper of the backstage support behavior, or the "fund-raising intermediary" who is driven by interests to help illegal fund-raising and collects commissions and other fees can be recognized as an accessory according to law. In practice, for positions such as financial personnel, business personnel, administrative personnel and technical personnel, it is necessary to make specific judgments in combination with the circumstances of specific cases to determine their criminal status. In particular, attention should be paid to personnel in financial and business departments. They should often contact the core business of non-smoking behavior, and the focus of punishment in this crime is also on the capital and business ends, with a higher risk of being identified as the principal offender. Thus, the modesty of criminal law limits the scope of criminal accountability to organizational planners and active participants, and whether the specific persons involved in the case need to fall within this scope and the identification of the principal and accessory has become one of the focuses of attention. 3. objective argument Identification of Non-suction Four Characteristics of (I) The four characteristics that constitute the crime of illegally absorbing public deposits are "illegality, openness, inducement, and non-specificity". In my opinion, we can focus on "illegality" and "non-specificity". Because this crime overlaps with private lending, the difference is mainly reflected in the above two points, and "illegality" is highly abstract. How to define it does not have obvious practicality in practice. Some "private lending" itself does not have clear legal provisions, which belongs to the scope of contract autonomy and does not require the legal permission of relevant departments. Therefore, it is impossible to distinguish the difference between illegal absorption of public deposits and private lending. With regard to "non-specificity", the crime of illegally absorbing public deposits requires an unspecified object, while legal private lending is an act of establishing a creditor's rights and debt relationship with a specific object, and the two are different. However, how to characterize the behavior of raising funds from a sufficient number of specific objects? Whether it constitutes the crime of illegally absorbing public deposits remains controversial. However, it should be noted that the 2019 Opinions of the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security on Several Issues Concerning the Handling of Criminal Cases of Illegal Fund-raising stipulates: "In the process of absorbing funds from relatives and friends or internal personnel of the unit, knowing that relatives and friends or unit Internal personnel absorb funds from unspecified objects and indulge; for the purpose of absorbing funds, absorb social personnel as internal personnel of the unit, and absorb funds from it; publicize to the public, and at the same time absorb funds from unspecified objects, relatives and friends, or internal personnel of the unit", the above three situations will still be recognized as absorbing funds from the public. Determination of the amount of (II) crime The amount of the crime is one of the important bases for the conviction and sentencing of the perpetrator in the case of the crime of illegally absorbing public deposits. Due to the variety of business models, the large number of people involved, and the different uses of funds, the crime of illegally absorbing public deposits is complicated in practice. Therefore, the determination of the amount of crime by the public prosecutors and defense lawyers is often controversial. The author believes that the following aspects should be deducted and paid attention: 1. The amount of investment by family members or internal personnel of the unit shall be deducted. Funds invested in the name of the defendant's family members (wife, husband or minor children) should generally be deducted from the amount absorbed, as the aforementioned invested money is usually the common property of the family or the defendant invested in the name of family members. At the same time, if the defendant first absorbs funds from family members, relatives and friends, and internal personnel of the unit, and then absorbs funds from other unspecified objects, in view of the fact that the behavior of the actor in the previous stage of absorbing funds is still difficult to identify as social, the amount of absorption should generally be deducted. 2. The amount absorbed independently by the offline personnel shall be deducted. This situation is a specific distinction between the type of actor and the specific behavior, which requires a detailed analysis by the defender, such as the amount of illegal fund-raising carried out independently by the development of the offline personnel after the illegal fund-raising personnel leave the unit, should not be included in the amount of their absorption. 3. Determination of the amount of rolling investment The amount of illegal or disguised absorption of public deposits shall be calculated on the basis of the full amount of funds absorbed by the perpetrator. If the one-time investment funds are not withdrawn, and the principal and interest due are used to roll the investment, the amount of the crime shall be calculated according to the principal of the one-time investment. 4. On the determination of the amount of evidence Regarding the determination of the criminal amount of the crime of illegally absorbing public deposits, there are two main reference bases: one is the judicial accounting appraisal report; the other is the summary of the amount of the investor's report materials. There may be a gap between the amount of audit and the amount reported, and how to review and identify has become one of the focuses of debate. The first way-the summary of the amount of reported materials by investors, the most common problem is that there will be a large number of unreported persons, resulting in the statistical amount being far lower than the actual amount of crimes, or investors reporting cases one after another, resulting in procrastination in handling cases and long-term consumption of judicial resources; The second way-judicial accounting appraisal report, the biggest practical problem that may exist is that the legality of the appraisal report is questionable and cannot be used as a basis for the decision. In view of the disadvantages of the above two methods, lawyers should not only focus on reviewing the documentary evidence such as investor report records, verbal evidence and related contracts, bank account transaction records, fund receipt and payment vouchers, but also pay attention to the "three characteristics of evidence" in the judicial accounting appraisal report, and pay full attention to whether each evidence can form a complete chain of evidence to determine the amount of crime and eliminate reasonable doubts. The Argument of 4. Object The object of a crime is one of the essential elements of a crime and is a social relationship protected by criminal law and infringed by criminal acts. However, the object of crime is complex and abstract. Therefore, the object of the defense is the focus of criminal lawyers in the defense, but also the difficulty. It is generally believed that the criminal law provides for the crime of illegally absorbing public deposits to protect the national financial order. In the author's opinion, three issues need to be specifically clarified, namely, what is the financial order? What does the financial order specifically mean? Does the behavior involved in the case violate the financial order? If the behavior of the actor's borrowing is only controlled within a specific range, the circulation of funds does not infringe the credit monopoly of financial institutions, does not destroy the existing financial order, it is not the behavior of illegally absorbing public deposits denied by the criminal law, and the funds borrowed by the actor are not used for high-risk or high-yield behaviors such as stock investment and lending, but normal production and operation activities, it will not have serious consequences for the country's credit order. In this case, in order to strive for the point of defense, the defender should not only review the relevant evidence on file, but also pay attention to the investigation and collection of evidence on the source and whereabouts of the funds to prove the defense point of view.

2022-05-17

Building materials perspective, glass products in the transaction of quality inspection related issues.

Background of 1. issues The quality level and quality control of traditional forming building materials can generally be directly displayed in external representations such as shape, texture and color. As long as the buyer does his duty of reasonable care, there will be no situation in which the seller conceals the quality defects and defects of building materials products in the transaction. Glass products are different from the traditional building materials production and processing process requirements, different material selection, ingredients, melting, forming, annealing and other processes, the production of glass product performance quality will be different, but generally not directly displayed in the external characterization of the product, often need to use the practice of testing. For example, tempered glass generally does not burst during delivery and installation, but tempered glass is a new type of glass material obtained by heating ordinary annealed glass to close to the softening point and then cooling it quickly and evenly, so the industry allows tempered glass. The self-explosion rate is between 1‰ and 3. The self-explosion of glass is not a quality item that can be inspected only by appearance at the time of receiving the goods. Therefore, the agreement and performance of quality inspection and warranty matters in the trading behavior of glass products is particularly important to promote transaction security. Allocation of responsibility for 2. quality inspection 1. Seller's Quality Inspection Obligation Before Delivery A contract of sale is a contract in which the seller transfers ownership of the subject matter to the buyer and the buyer pays the price. The seller shall deliver the subject matter in accordance with the agreed quality requirements. If the purpose of the contract cannot be achieved because the subject matter does not meet the quality requirements, the buyer may refuse to accept the subject matter, terminate the contract or request to bear the liability for breach of contract. Before delivering glass products and necessary supporting materials to the buyer, the glass manufacturer shall, in accordance with the provisions of the Product Quality Law, ensure that the products to be delivered meet the quality requirements stipulated in the sales contract, test the safety performance indicators of the products delivered from the warehouse through the built-in product quality control and testing department of the enterprise or the appointed third-party quality inspection agency, and test whether they meet the specifications and models required by the buyer through the sales department. If the glass products delivered by the glass manufacturer and the necessary supporting facilities do not meet the requirements of the contract, the buyer shall have the right to claim liability for breach of contract. 2. After receiving the buyer quality inspection evidence According to the Civil Code, the buyer shall inspect the subject matter within the agreed inspection period when it receives it. If there is no agreed time limit for inspection, it shall be inspected in a timely manner. After receiving the glass products, the buyer shall be deemed to have completed the quality inspection. If there is an inspection period, the quality inspection shall be deemed to have been completed after the expiration of the inspection period. The buyer of glass products shall pay attention to the quality acceptance of the delivered goods before receiving the goods or before the expiration of the agreed quality inspection period, and if the quality problem is claimed within the time limit, the buyer shall bear the burden of proof of the quality problem. 3. quality inspection has time limit 1. If the inspection period is agreed upon, the buyer shall conduct quality inspection within the agreed period. Where the parties agree on an inspection period, the buyer shall, within the inspection period, notify the seller that the quantity or quality of the subject matter does not conform to the agreement. If the buyer fails to give notice, the quantity or quality of the subject matter shall be deemed to be in conformity with the agreement. The buyer of glass products shall conduct quality inspection within the inspection period stipulated in the contract, otherwise the products delivered by the glass manufacturer shall generally be deemed to conform to the quality agreement. Case:(2021) Lu 15 min zong No. 4650 Qingdao yaoyang doors and windows curtain wall engineering co., ltd. and Shandong north glass technology co., ltd. are set as civil second instance civil judgments on contract disputes The court of first instance held that the quality of the products involved in the case. Qingdao Yaoyang Company requested Northern Glass Company to bear the liability for breach of contract on the grounds that the products involved in the case had suction cup prints, patterns and bubbles after installation and there were quality problems. Because both parties have a clear agreement on the quality problem when concluding the contract (written objection shall be raised to the supplier within 48 hours after receiving the product; Other quality problems of glass are considered inconsistent with the contract, A written objection should be raised to the supplier within 7 days after receiving the product, otherwise it will be deemed that the product quality conforms to the contract agreement). Qingdao Yaoyang Company did not raise a written objection to the product quality within the agreed period (on July 5, 2021, it sent photos through WeChat to inform the staff of North Glass Company that some glass had suction cup marks and could not be wiped off, which was about half a year away from the completion of installation), considering the glass products involved in the case, if the above situation (suction cup printing) occurs, it can be seen intuitively that since the buyer cannot prove that the suction cup printing occurs only when the goods are received or during the installation process, and Qingdao Yaoyang Company has not provided sufficient evidence (the photos provided have neither the date nor the shooting place) to prove its claim, no matter from the agreement of both parties, neither the certainty of the evidence nor the certainty of the evidence can confirm that the above-mentioned quality problems exist in the products provided by Northern Glass Company. Since it cannot be determined that the glass product has the above quality problems, it is not necessary to identify its quality. The court of second instance held that with regard to the glass quality problem raised by the appellant Qingdao Yaoyang Company, the evidence submitted by the appellant in the second instance only showed the photos in WeChat, and there was no communication on the quality problem, and the call record did not have the record of the call content to confirm each other, so the content of the call could not be known. The "Glass Processing Contract" signed by both parties has clearly stipulated that "if the appellant thinks that the variety, configuration (model), specification and processing requirements of the product are inconsistent with the contract, he shall submit a written objection to the supplier within 48 hours after receiving the product; if he thinks that other quality problems of glass are inconsistent with the contract, he shall submit a written objection to the supplier within 7 days after receiving the product, otherwise, it is deemed that the product quality is in accordance with the contract, and the products delivered by the supplier fully meet the requirements of the order; the appellant shall first inspect the product variety, configuration (model), specification, processing requirements and surface quality before installing and using the product. If the appellant installs or uses the product, it shall be deemed that the product fully meets the requirements of the order". Accordingly, the appellant has no valid evidence to prove that it raised an objection to the glass quality within the time stipulated in the above-mentioned contract. Moreover, the appellant claimed that the two sides had been communicating from May 28, 2020 to October 29, 2020, but when the two sides checked the accounts from December 25 to 28, 2020, the appellant Qingdao Yaoyang Company recognized the price of the goods received, the damaged amount and the payment already paid, and did not put forward any opinions on the quality problems. Therefore, the court of first instance held that it was not improper to determine the quality problems of glass products and there was no need for judicial appraisal. The appellant's counterclaim for the appellee to pay the loss of 52264.36 yuan for replacing the glass has no factual basis and the court will not support it. 2. If there is no agreed inspection period, the buyer shall conduct quality inspection within a reasonable period of time. If the parties have not agreed on an inspection period, the buyer shall notify the seller within a reasonable period of time after discovering or should have discovered that the quantity or quality of the subject matter does not conform to the agreement. If the buyer fails to notify the seller within a reasonable period of time or within two years from the date of receipt of the subject matter, the quantity or quality of the subject matter shall be deemed to be in conformity with the agreement. If the parties to the glass product transaction do not agree on the inspection period in the contract, the buyer shall notify the glass product within a reasonable period of time that the glass product does not conform to the agreement, and the reasonable period shall generally not exceed two years. Case:(2021) Qing 0102 Min Chu No. 3079 Meng Fanpei, Qinghai Qing Bo Industrial Co., Ltd. Civil First Instance Civil Judgment on Disputes over Sales Contracts The Court believes that the focus of the dispute in this case is the cause of the quality problem of the goods delivered by the defendant Qinghai Qingbo Industrial Co., Ltd. The plaintiff Meng Fanpei demanded the defendant Qinghai Qingbo Industrial Co., Ltd. to return the payment for goods of 52319 yuan, pay interest of 4127 yuan, compensate freight of 3200 yuan and labor cost of 8680 yuan. The plaintiff and the defendant have formed a sales contract relationship, but the two parties have not agreed on the time limit for inspection of the goods. The defendant delivered the goods according to the contract. The plaintiff shall perform the inspection obligation of the buyer. In the court hearing, the plaintiff admitted that the goods have not inspected the goods and used them directly, and after one month of use, the plaintiff obviously failed to fulfill the inspection obligation and should bear the corresponding responsibility. If the parties fail to agree on the inspection period, and the delivery note and confirmation note signed by the buyer indicate the quantity, model and specification of the subject matter, it is presumed that the buyer has inspected the quantity and appearance defects, except where there is relevant evidence sufficient to overturn it, the plaintiff signed the delivery note in this case, in addition, according to the conclusion issued by the appraisal institution and the fact that the plaintiff raised the problem of the goods involved in the case one month after receiving the goods, the reason for the formation of the quality problem of the goods involved in the case cannot be determined, the plaintiff also did not submit evidence to prove that the external attachment was caused by the defendant. Therefore, the plaintiff's claim is unfounded and the court will not support it. Case:(2021) Beijing 0115 Minchu No. 21878 Beijing Xifei Century Door, Window and Curtain Wall Engineering Co., Ltd. and Guizhou Xiangyun Glass Co., Ltd. Civil Judgment of First Instance on Dispute over Sales Contract The Court believes that the "Glass Processing Contract" and the "Correspondence Confirmation Letter" involved in the case are the true intentions of both parties, and the content is legal and valid. In this case, both parties confirmed that the brand of the products supplied by Xiangyun Company did not conform to the contract. Xiangyun Company argued that the brand change was approved by Xifei Company, which was not recognized by Xifei Company. The Court believes that, first of all, Xiangyun Company has delivered all the products to the designated place of Xifei Company before June 5, 2019, and the brand and unit price of the products have been clearly indicated in the attached delivery note. The relevant responsible personnel of Xifei Company did not raise any objection after signing for it. Secondly, on July 29, 2019, Xifei confirmed the amount of money owed to Xiangyun and did not raise any objection to the so-called brand discrepancy. Finally, as of August 19, 2021, when Xifei filed the lawsuit in this case, for more than 2 years, Xifei had not filed an objection or made a claim against Xiangyun for the so-called non-conformity of the supply brand. Based on the above situation, our hospital accepts Xiangyun Company's reply and does not support Xifei Company's claim for Xiangyun Company to pay the contract price difference of 240000 yuan. The court also did not support Xifei Company's claim for compensation of 27000 yuan for losses due to insufficient evidence. Case:(2021) Beijing 0113 Minchu No. 1329 Chenghou Law and Zhang Huajun's First Instance Civil Judgment on Disputes over Sales Contracts Article 12 of the Interpretation of the Supreme People's Court on the Application of Law in the Trial of Disputes over Contracts of Sale (as amended in 2020) stipulates that when the People's Court specifically determines the "reasonable period" stipulated in Article 621, paragraph 2, of the Civil Code, the nature of the transaction between the parties, the purpose of the transaction, the mode of the transaction, the habits of the transaction, the type, quantity, nature, installation and use of the subject matter, the nature of the defect, the buyer's reasonable duty of care, the inspection method and the degree of difficulty, the specific environment of the buyer or the inspector, their own skills and other reasonable factors shall be judged on the basis of the principle of good faith. The "two years" stipulated in the second paragraph of Article 621 of the Civil Code is the longest reasonable period. The period shall remain unchanged, and the suspension, interruption or extension of the statute of limitations shall not apply. Defendant (counterclaim plaintiff) Zhang Huajun admitted that the glass installation was completed in the summer of 2018, admitted that visual inspection could distinguish tempered glass from non-tempered glass, argued that the full payment would be paid to the plaintiff (counterclaim defendant) in November 2020, and that the glass found in December 2020 did not meet the agreed standards, which was contrary to common sense and contrary to the provisions of judicial interpretation. The court cannot accept the defense opinion of the defendant (counterclaim plaintiff) Zhang Huajun's agreement to use tempered glass for all glass. 3. On-site receipt is generally regarded as an inspection of quantity and appearance defects. If the parties have not agreed on the inspection period, and the delivery note, confirmation note, etc. signed by the buyer indicate the quantity, model and specification of the subject matter, it is presumed that the buyer has inspected the quantity and appearance defects, unless there is relevant evidence sufficient to overturn it. If the buyer of glass products signs for the goods on site, it does not necessarily mean that the buyer has completed the quality inspection of the glass products. It is generally considered to be the inspection of quantity and appearance defects. The buyer still has a certain quality inspection period for the glass quality, but the buyer should still bear the burden of proof to prove that there are indeed quality problems. Case:(2021) Anhui Hongsen Glass Co., Ltd., Wuhu Xinxin Ledao Window Co., Ltd. and other civil judgments of first instance over disputes over sales contracts, No. 4825, Minchu, Anhui 0207 The sale and purchase contract between Hongsen Glass Company and Shin Shin Ledao Company did not stipulate the period of glass inspection. However, the invoice signed by Shin Shin Ledao Company indicates the height * width and quantity of the subject matter. According to Article 623 of the Civil Code, the parties have not agreed on the inspection period. If the delivery note and confirmation note signed by the buyer indicate the quantity, model and specification of the subject matter, it is presumed that the buyer has inspected the quantity and appearance defects, unless there is relevant evidence sufficient to overturn it. Shin Shin Ledao did not provide sufficient evidence to overturn the appearance of the glass provided by Hongsen Glass Company. Shin Shin Ledao Company notified Hongsen Glass Company that the quality of the glass provided did not conform to the agreement. Wen Jing (shareholder of Shin Shin Ledao Company) said in response to the undertaker's inquiry in court that it proved whether the glass brand provided by Hongsen Glass Company was "Wuhu Xinyi", which could not be seen by naked eyes and must be tested. That is, it is a hidden flaw. Because some flaws in the glass are hidden, they cannot be found immediately and must be found by special inspection. The evidence provided by Shin Shin Ledao Company cannot prove that it requires the glass brand of Hongsen Glass Company to be "Wuhu Xinyi", nor can it provide evidence to prove that the glass quality provided by Hongsen Glass Company does not conform to the agreement, so its defense cannot be established and the court will not accept it. If Shin Shin Ledao Company suffers losses due to the non-conformity of the quality of the glass provided by Hongsen Glass Company, it may claim separately. 4. related quality assurance responsibilities If both parties to the transaction have a quality assurance period for the subject matter, the quality assurance period shall apply. Although both quality inspection and quality assurance occur after the product is delivered and serve as a guarantee that the seller is qualified to perform its delivery obligations, they are applied in different orders and with different emphases. Quality assurance liability may arise only after the quality inspection procedure is preceded. Quality inspection focuses on whether the quality of the delivered product meets the transaction requirements at the time of delivery and during the inspection period, and quality assurance focuses on the service life benefits of the product quality after the delivery and inspection period. After the product is delivered, the quality of the product is integrated into the buyer's way of use and is no longer only subject to the seller's manufacturing process. The parties to the glass product transaction may agree on the liability for product warranty after proper delivery.

2022-05-16

Viewpoint | Exploration of third-party mechanism compliance legal services

I. Concepts related to compliance with third-party mechanisms 1. The third-party mechanism is the abbreviation of "third-party supervision and evaluation mechanism for compliance of enterprises involved in the case", which means that when the people's Procuratorate handles enterprise-related crime cases, it is handed over to a third-party supervision and evaluation organization elected by the management committee of the third-party supervision and evaluation mechanism to investigate, evaluate, supervise and inspect the compliance commitments of the enterprises involved in the case. 2. The customers of the third-party mechanism compliance legal service are enterprises suspected of unit crimes, or enterprises suspected of committing crimes closely related to production and business activities, such as actual controllers, management personnel, key technical personnel, etc. The alleged charges are economic crimes and job-related crimes committed by the enterprise in its production and business activities. The subject of the crime includes unit crimes committed by companies and enterprises, as well as individual crimes closely related to production and business activities committed by companies, actual controllers, management personnel, and key technical personnel. 3. The basis for carrying out third-party mechanism compliance legal services is the "Guiding Opinions on Establishing a Compliance Third-Party Supervision and Evaluation Mechanism for Enterprises Involved in Cases (Trial)" jointly issued by the Supreme People's Procuratorate in June 2021 in conjunction with the State-owned Assets Supervision and Administration Commission of the State Council, the Ministry of Finance, the All-China Federation of Industry and Commerce, the Ministry of Justice, the Ministry of Ecology and Environment, the purpose of the guidance is to establish and improve the compliance third-party supervision and evaluation mechanism of the enterprises involved in the case in the pilot work of promoting enterprise compliance reform in accordance with the law, effectively punish and prevent enterprise crimes, serve to ensure high-quality economic and social development, and help promote the modernization of the national governance system and governance capacity. II. Content of compliance legal services for third-party mechanisms 1. Help the enterprises involved in the case to apply to the procuratorate for enterprise compliance pilot and apply for a third-party mechanism. The contents of the application include whether the enterprise-related crime cases meet the requirements of the enterprise compliance pilot and the applicable conditions of the third-party mechanism; the opinions of the enterprises and individuals involved in the case on the application of the third-party mechanism; and the formulation of a compliance rectification work plan. 2. To form a compliance construction leading group with the actual controller, the main person in charge and the directly responsible person in charge of the enterprise involved, and set up a compliance management organization or management personnel suitable for the type, scale, business scope and industry characteristics of the enterprise. Help the enterprises involved to formulate feasible, effective and comprehensive special or multiple compliance plans, and clearly commit to the completion time limit of the compliance plan. The compliance plan includes reviewing the internal governance structure, rules and regulations, personnel management system, etc. of the enterprise and identifying the existing problems; formulating compliance management norms for the characteristics of the enterprise involved; establishing a comprehensive compliance management system; and improving the compliance risk prevention reporting mechanism. 3. Revise and improve the compliance plan according to the opinions and suggestions put forward by the procuratorate, help enterprises and employees to earnestly implement the compliance plan according to the time limit within the compliance inspection period determined by the procuratorate, and regularly report on the implementation of the compliance plan. Assist the enterprise to inspect and evaluate the performance of the compliance plan by the third-party organization on a regular or irregular basis. When the compliance inspection period expires, conduct a comprehensive summary of the completion of the compliance plan, issue a written report, and cooperate with third-party organizations to understand, evaluate, supervise and inspect the effectiveness of the special compliance rectification plan and related compliance management system of the enterprise involved. Third-party mechanism compliance legal services to help the enterprises involved. 1. The compliance construction of the involved enterprises that meet the requirements of the third-party organization shall include the effective identification and control of the compliance risks involved, the timely disposal of violations of laws and regulations, the reasonable allocation of compliance management institutions or management personnel, the establishment of compliance management system mechanism and the full guarantee of human and material resources, the normal operation of detection, reporting, investigation, handling mechanism and compliance performance evaluation mechanism, and the continuous rectification of compliance mechanism, form a compliance culture for the companies involved. 2. Carry out a series of compliance management system construction activities, such as improving the corporate governance structure, improving internal rules and regulations, training on compliance knowledge, guidance on compliance methods, identifying compliance risks and proposing compliance measures, so as to provide effective reference for the people's procuratorate to make decisions not to approve arrest, change compulsory measures and not to prosecute, and put forward sentencing suggestions for lenient punishment and punishment to the relevant competent authorities. Four Conclusion In March 2020, Shanghai Pudong, Jinshan, Jiangsu Zhangjiagang, Shandong Tancheng, Guangdong Shenzhen Nanshan, Bao'an and other six grass-roots procuratorates to carry out the "enterprise crime relative non-prosecution applicable mechanism reform", marking China's procuratorial organs to start the compliance non-prosecution system reform exploration. Compliance lawyers provide third-party mechanism compliance legal services for the companies involved in the case, which can not only vigorously protect the legitimate rights and interests of private enterprises and entrepreneurs, but also effectively promote private enterprises to build a bottom line of law-abiding and compliant operations. Continuously deepening and improving the compliance legal services of the third-party mechanism is a major reform and innovation measure to thoroughly implement the spirit of the important instructions of General Secretary Jinping and the major decisions and deployments of the Party Central Committee, to ensure high-quality development, and to help promote the modernization of the national governance system and governance capabilities. Important political, legal and practical significance.

2022-05-14

According to the case, the case of negligence causing death-it was all caused by walking the dog.

Brief of the case One day Xiao Wang was walking his dog near his home when Lao Zhang was walking his dog here. Lao Zhang's dog barked at Xiao Wang's dog. Xiao Wang's dog ran over without a leash. Lao Zhang picked up his dog, insulted Xiao Wang and kicked Xiao Wang's dog. when Xiao Wang saw that his dog was kicked, he hurried over to stop Lao Zhang from kicking and scolded each other with Lao Zhang. then the two fought together. After passers-by called the police, the police rushed to the scene and took Xiao Wang and Lao Zhang to the public security bureau. The police handling the case separately questioned the two people who quarreled. When questioning Lao Zhang, Lao Zhang felt heart discomfort, and the police handling the case immediately contacted the hospital emergency center. Soon the ambulance from the emergency center arrived at the Public Security Bureau and sent Lao Zhang to the hospital for treatment. Later, Lao Zhang died after being rescued by the hospital. According to forensic identification, Lao Zhang died of acute coronary atherosclerotic heart disease under the action of mental and psychological factors such as quarrel, emotional excitement or excessive fatigue. Focus question: The quarrel and minor violence between Xiao Wang and Lao Zhang caused by walking the dog induced Lao Zhang's own disease and led to Lao Zhang's death. Is Lao Zhang's death an accident or a criminal case? Law Popularization Small Classroom Article 16 of my country's "Criminal Law" stipulates: "Although the act objectively caused damage, it was not caused by intention or negligence, but by irresistible or unforeseeable reasons, and it is not a crime." The article of the law is called "force majeure" and "accident" in criminal law theory ". The accident in criminal law refers to that the specific behavior of the actor has objectively led to the corresponding damage consequences, which has reached the level that must be regulated by criminal law. However, the damage consequences are not caused by the fault or intention of the actor, so the actor does not bear criminal responsibility. Article 233 of the the People's Republic of China Criminal Law stipulates that anyone who causes death through negligence shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years; if the circumstances are relatively minor, he shall be sentenced to fixed-term imprisonment of not more than three years. Where this Law provides otherwise, the provisions shall prevail. The crime of negligence causing death refers to the act of the result of the death of another person caused by the negligence of the perpetrator. Negligence causing death often occurs in the real society. It is a type of case that endangers personal rights with a high incidence. It includes not only the implementation of acts that should not be true, resulting in negligent death, but also the failure to implement the obligation. Acts, resulting in negligent death. To constitute this crime, it must be the actual result of the death of another person, and the result of no death does not constitute this crime. The core part of the cognizance of the crime of negligence causing death is the cognizance of negligence and causality. Negligence includes negligence and overconfidence. Causality in criminal law refers to the relationship between the perpetrator's harmful behavior and the harmful consequences. Harmful behavior is the cause, and the harmful consequence is the result. The causal relationship between the perpetrator's harmful behavior and the harmful result is the objective basis for determining whether the perpetrator should bear criminal responsibility. If the harmful consequence is caused by the perpetrator's harmful behavior, and the perpetrator is subjectively guilty, the perpetrator should bear criminal responsibility, otherwise, he should not bear criminal responsibility. In principle, only when the perpetrator's harmful behavior has a causal effect on the occurrence of the harmful result, the question between the harmful behavior and the harmful consequence has a causal relationship in criminal law. If the perpetrator's behavior is influenced by external conditions and produces harmful results, if the external conditions play a decisive role (the main cause force), the perpetrator shall generally not be held criminally responsible for the harmful consequences caused by the external conditions. Case analysis In this case, Xiao Wang quarreled and clashed with Lao Zhang over trivial matters, which objectively resulted in the death of Lao Zhang. According to forensic identification, the quarrel and physical conflict in this case were only the cause of Lao Zhang's death, and the root cause of Lao Zhang's death was his own disease. However, it is undeniable that it is precisely because Xiao Wang and Lao Zhang's fighting and abusive behavior that Lao Zhang's body has an emergency response, leading to the death of acute cardiac dysfunction, not Lao Zhang's own cause of death. Therefore, Xiao Wang's abuse and beatings are necessary conditions for the occurrence of Lao Zhang's death. The former has a causal effect on the occurrence of the latter, and there is a legal causal relationship between the two. Regarding Xiao Wang's suggestion that there is no causal relationship between his behavior and the result of Lao Zhang's death, it cannot be ruled out that the police handling the case asked Lao Zhang about improper behavior and Lao Zhang's death due to personal reasons in the hospital. After investigation, Xiao Wang quarreled with Lao Zhang and had a physical conflict, the police asked both parties, and Lao Zhang was admitted to the hospital for medical treatment, which was the main event before Lao Zhang's death. The former is the cause of subsequent events. In this case, there is no evidence to prove that the police handled the improper case handling behavior of both parties, as well as whether Lao Zhang was angry and delayed treatment when he was admitted to the hospital, which can separately establish the cause of Lao Zhang's coronary atherosclerotic heart attack. In addition, from the subjective point of view, although Xiao Wang and Lao Zhang had beaten each other and abused each other, from the point of view of the position and intensity of Xiao Wang's attack on Lao Zhang, his behavior is a general beating behavior, not an intentional injury behavior intended to cause damage to other people's body organs. Therefore, it is not appropriate to determine that Xiao Wang has subjective intention to cause damage to other people's body organs. Therefore, Xiao Wang's behavior does not constitute the crime of intentional injury. Xiao Wang (28 years old), as a mentally sound and physically strong adult, should have foreseen the risk of injury or death caused by the act of fighting with Lao Zhang (65 years old), but his subjective negligence did not foresee, in the end, it objectively led to Lao Zhang's "death from acute coronary atherosclerotic heart disease under the action of mental and psychological factors such as quarrels, emotional excitement, or excessive fatigue". Based on this, Xiao Wang and Lao Zhang quarreled and had physical conflicts. The degree of injury was minor and could not be fatal. However, Lao Zhang suffered from coronary atherosclerotic heart disease and the degree of disease was severe. The disease was in the form of quarrels, emotional excitement and other mental and psychological factors. Or the result of excessive fatigue and other incentives, the crime of negligence causing death is accurate. Referee result The court held that Xiao Wang's behavior constituted the crime of negligence causing death, and was sentenced to one year and six months in prison, and compensated Lao Zhang's close relatives for the corresponding economic losses. Warm Tips For a moment, fist and fist, regret a lifetime of annoyance. In daily life, quarrels and even minor tearing and pushing behaviors are common. People are used to thinking that quarrels are not illegal, tearing and pushing are not crimes. In fact, this view is wrong. In this case, a dispute was caused by walking the dog. Both Xiao Wang and Lao Zhang could not correctly handle the minor conflicts in their lives. They intended to solve the problem through quarrels and fights. As a result, one person died of a heart attack after the quarrel and the other was sentenced. This case may give the world a reminder: When encountering conflicts, remember to keep a clear head and use rational methods and reasonable ways to solve problems.

2022-05-14

Viewpoint | The determination of the nature of the obligation to make up the difference and the analysis of the rules of judicial application.

Introduction In order to ensure the realization of the creditor's claim, it is common for parties outside the contract to provide similar commitment documents such as difference compensation, but there are different understandings in practice as to how the legal nature of such credit enhancement measures should be determined and how relevant disputes should be handled. This paper will combine the relevant cases of the Supreme Law to sort out the nature of the obligation to make up the difference and the thinking of the referee, and analyze the legal liability of the obligation to make up the difference under different circumstances. The concept and classification of the obligation to make up the difference in 1.. The obligation to make up the difference refers to the obligation to make up the difference in order to ensure the relationship between the creditor and the debtor, and to agree that when the debtor fails to perform its obligations in accordance with the agreement or the amount of money is insufficient to pay, the debtor or a third party shall bear the obligation to make up the difference in accordance with the agreement. The obligation to make up the difference can be divided into the debtor's obligation to make up the difference and the third party's obligation to make up the difference according to the subject. Among them, the debtor's obligation to make up the difference is borne by the debtor himself, and the third party's obligation to make up the difference is generally committed by the third party to provide a unilateral commitment letter or sign an agreement with the creditor. Depending on the relationship between the main rights and obligations guaranteed, the obligation to make up the difference can be divided into the difference to make up the debt, the difference to make up the dividend and the difference to make up the collection of funds, of which the most common difference to make up the debt mainly includes the class guarantee type difference to make up and the class debt to join the difference to make up. The judicial point of view of the legal nature of the obligation to make up the difference of 2.. At present, there are mainly the following views on the legal nature of the obligation to make up the difference: one view is that the obligation to make up the difference constitutes the addition of debt, that is, if the parties promise to bear the responsibility for making up the difference as long as the principal and interest of the loan are overdue or in default, it constitutes the addition of debt; the other view is that the obligation to make up the difference constitutes a guarantee, that is, if the contract is, after the contract is, regardless of the form of claim or right of the secured party, the shortfall-making party shall be unconditionally liable for joint and several guarantees. In addition, there are other determinations of a nature such as the obligation to make up the difference constitutes a commitment to pay. The addition of 1. debt. Case: [(2020) Supreme Law Minzong No. 295] Dispute over Loan Contract between Jiangsu jintao Investment Holding Co., Ltd. and Jiangxi Kete Investment Co., Ltd. The court held that the Deficiency Agreement in question had the nature of debt accession. The Deficiency Agreement stipulates that Jin Tao and Zhu Yongning shall unconditionally perform the obligation to make up the difference between the fixed income and principal obtained by Cote Company under the Loan Contract, and Jin Tao and Zhu Yongning shall bear unlimited joint and several liability for the above obligations. The Difference Replenishment Agreement does not expressly stipulate that Jin Tao Company and Zhu Yongning are to provide guarantee for the debts of Yizhou Company under the Loan Contract, and from the agreement of the Difference Replenishment Agreement, the difference replenishment obligation of the difference replenishment person does not have the attribute of debt. Therefore, Jin Tao Company and Zhu Yongning belong to the debt joining, not to the general guarantee. Opinion 2. Guarantee Case: [(2019) Supreme Law Minzong No. 560] Huarong International Trust Co., Ltd. and Kaidi Ecological Environment Technology Co., Ltd. Dispute over Financial Loan Contract The court held that the determination of whether the Contract for Deficiency was a guarantee or a common debt burden should be determined in accordance with the content of the contract. According to the agreement of the "Difference Supplement Contract", the difference supplement liability of Kaidi Ecological Company is based on the fact that the principal debtors Kaidi Energy Company and Kaidi Power Company cannot fulfill their obligations to repay the principal and interest in accordance with the agreement of the "Trust Loan Contract", that is, Kaidi Ecological Company is responsible for the debts of the principal debtors Kaidi Energy Company and Kaidi Power Company. Obviously, the nature of the Deficiency Payment Contract is not a common debt burden but a guarantee. Viewpoint 3. Payment Commitment Case: [(2019) Supreme Law Minzong No. 1524] Dispute between Antong Holding Co., Ltd. and Ankang Business Trust The court held that the obligation to make up the difference refers to: Ankang's interest distribution date under the Trust Contract (including the distribution date of the net income of the trust during the existence of the trust and the distribution date of the trust due), if due to any reason including but not limited to Renjian Company's failure to pay off the principal and interest under the Trust Loan Contract in time and in full, if Ankang fails to obtain the distribution of trust benefits on time and in full according to the 13% annual trust return rate, Guo Dongze shall bear full supplementary responsibility for the difference, including: during the duration of the trust, if Ankang's net trust income according to the Trust Contract fails to reach the 13% annual return rate, Guo Dongze shall make up the difference to Ankang; On the due distribution date of the trust, guo Dongze shall pay Ankang the principal of the trust loan of 0.2 billion yuan, and the difference that has not been made up to the annualized 13% income. Determination of the nature of the obligation to make up the difference in 3. with the Minutes of the Ninth People's Conference "Minutes of the National Court Civil and Commercial Trial Work Conference" (hereinafter referred to as "Minutes of the Nine People's Conference") 91. If the parties outside the trust contract provide similar commitment documents such as third-party balance compensation, performance of due repurchase obligations, liquidity support and other similar commitment documents as credit enhancement measures, the contents of which conform to the provisions of the law on guarantee, the people's court shall determine that a guarantee contractual relationship has been established between the parties. If the content does not conform to the provisions of the law on guarantee, the corresponding rights and obligations shall be determined according to the specific content of the commitment document, and the corresponding civil liability shall be determined according to the facts of the case. For the first time, the "Minutes of the Ninth People's Conference" clarified the nature of the trust credit enhancement measures including the difference compensation agreement in the judicial policy document: if the content of the document meets the provisions on guarantees, it should be recognized as a guarantee contract relationship; its content If it does not conform to the provisions of the guarantee, the corresponding rights and obligations shall be determined according to the specific content of the commitment document, and the corresponding civil liability shall be determined according to the facts of the case. From the point of view of the interpretation of the text, the above rules can be further summarized as: guarantee guarantee priority, independent contract inferior. 4. the nature of the obligation to make up the difference in the Judicial Interpretation of the Guarantee System. Article 25 of the interpretation of the Supreme People's Court on the application of the guarantee system in the the People's Republic of China Civil Code (hereinafter referred to as the "judicial interpretation of the guarantee system"), the parties agree in the guarantee contract that the guarantor shall bear the guarantee liability only when the debtor is unable to perform the debt or is unable to repay the debt, and the people's court shall recognize it as a general guarantee. If the parties agree in the guarantee contract that the guarantor shall bear the guarantee liability when the debtor fails to perform the debt or fails to repay the debt, unconditionally bear the guarantee liability and other similar contents, and do not have the intention that the debtor should bear the responsibility first, the people's court shall recognize it as a joint and several liability guarantee. Article 36 If a third party provides a creditor with similar commitment documents such as shortfall, liquidity support, etc. as a credit enhancement measure, it has the intention to provide security, and if the creditor requests the third party to assume the responsibility for the guarantee, the people's court shall deal with it in accordance with the relevant provisions of the guarantee. If the commitment document provided by the third party to the creditor has the intention of joining the debt or sharing the debt with the debtor, the people's court shall determine that the debt is joined under Article 552 of the Civil Code. If it is difficult to determine whether the commitment document provided by the third party in the preceding two paragraphs is a guarantee or a debt, the people's court shall determine it as a guarantee. The Judicial Interpretation of the Guarantee System and the Minutes of the Ninth People's Conference have roughly the same determination of the nature of the obligation to make up the difference, but compared with the Minutes of the Ninth People's Conference, the Judicial Interpretation of the Guarantee System has a broader and clearer scope of application to the determination of the nature of the obligation to make up the difference due to the inclusion of debt in the Civil Code. Specifically, the nature of the obligation to make up the difference is specified in three cases: the first is a guarantee and the second is a debt addition, both of which require a clear indication of meaning in the agreement. When it is not possible to determine whether it is a guarantee or a debt addition on the basis of a deficiency replenishment agreement, it tends to be recognized as a guarantee. However, when it can neither be recognized as a guarantee nor as a debt accession according to the agreement, it should be recognized as belonging to the third case, that is, an independent contractual obligation, and the difference making obligor does not need to bear joint and several liability or guarantee liability, but when the difference making agreement is valid, it still needs to bear the agreed obligations or corresponding civil liability in accordance with the agreement.

2022-05-14

Civil and Commercial Perspective | Who is the Defendant in the "Bear" Child Causing Trouble in Single Parent Families

Brief description of case Ms. Xu and Mr. Zhang got married on May 8, 2007 and gave birth to a son, Zhang Xiaoming, on March 2, 2008. On December 3, 2018, the two parties were divorced by the court; the legitimate child Zhang Xiaoming was raised by Mr. Zhang; Ms. Xu paid Zhang Xiaoming a maintenance fee of 3000 yuan before the 3rd of each month; Ms. Xu visited twice a month, and each visit was for one day., The specific date is negotiated between the two parties. After the divorce, Ms. Xu paid maintenance on time every month, but Mr. Zhang never allowed Ms. Xu to visit the children. Mr. Zhang is usually busy with his work, and the children are looked after by his grandmother for a long time. Grandma usually dotes on the children, which leads to the children being very naughty. Ms. Xu was anxious in her heart, but there was nothing she could do. On March 22, 2022, Zhang Xiaoming injured his classmate Xu Yuxin at school. Xu Yuxin sued Mr. Zhang, Ms. Xu, Zhang Xiaoming and the school, asking Mr. Zhang, Ms. Xu, Zhang Xiaoming and the school to compensate Xu Yuxin for medical expenses, nursing expenses, transportation expenses, compensation for mental damage, study counseling and other related expenses totaling 45488 yuan. As the injured part is prone to fracture again, the right to continue to demand payment of medical expenses, nursing expenses, transportation expenses, etc; to bear the costs of litigation. The People's Court notified Ms. Xu to participate in the proceedings. Ms. Xu believes that she has been divorced for five years. According to the divorce judgment of the people's court, the child is directly raised by her father. She has not lived with the child and cannot exercise the right to educate him. Moreover, the father of the child directly deprived her of the right to visit the child. Therefore, the court informed her that there was no legal basis to participate in the proceedings with the child's father as the child's legal guardian. He is also a victim himself. In the face of his own flesh and blood, he cannot meet each other. Moreover, it is the grandmother who directly raises and takes care of the child. To take a step back, even if he is responsible, it should be the father and grandmother of the child. Lawyer's opinion First of all, according to Article 67 of the Interpretation of the Supreme People's Court on the Application of the the People's Republic of China Civil Procedure Law, if a person with no capacity for civil conduct or a person with limited capacity for civil conduct causes damage to others, the person with no capacity for civil conduct, the person with limited capacity for civil conduct and his guardian are co-defendants. Specifically in this case, because Zhang Xiaoming injured his classmate Xu Yuxin at school, Xu Yuxin has the right to sue Zhang Xiaoming and his parents. Secondly, the relationship between the rights and obligations of parents and children based on blood relationship, is a kind of natural parental relationship. The existence of such a relationship does not depend on the marital status of both parents and the existence of direct upbringing and education of children. Although Ms. Xu did not directly raise her children after her divorce, the mother-child relationship with her children has not changed, and the legal relationship of rights and obligations has not disappeared. After the people's court accepted the case of the right to health dispute in which her child was the defendant, it was informed that there was a sufficient legal basis for her to participate in the lawsuit. Finally, although Zhang Xiaoming's grandmother actually takes care of Zhang Xiaoming's daily life, she should not be listed as a defendant because she is not the legal guardian of the child. Legal provisions 1. Article 1084 of the the People's Republic of China Civil Code stipulates that the relationship between parents and children shall not be eliminated by the divorce of the parents. After divorce, the children, whether raised directly by the father or mother, remain the children of both parents. After divorce, parents still have the right and duty to raise, educate and protect their children. The first paragraph of Article 27 of the the People's Republic of China Civil Code stipulates that parents are the guardians of minor children. 3. Article 1,178 of the the People's Republic of China Civil Code stipulates that if a person without civil capacity or a person with limited civil capacity causes damage to others, the guardian shall bear tort liability. If the guardian fulfills his duty of guardianship, his tort liability may be reduced. If a person with no capacity for civil conduct or a person with limited capacity for civil conduct causes damage to another person, he shall pay compensation from his own property. 4. Article 67 of the Interpretation of the Supreme People's Court on the Application of the the People's Republic of China Civil Procedure Law stipulates that if a person with no capacity for civil conduct or a person with limited capacity for civil conduct causes damage to others, the person with no capacity for civil conduct, the person with limited capacity for civil conduct and his guardian are co-defendants.

2022-05-13

Viewpoint... Whether the actual investor can "hard" the applicant in the enforcement procedure -- an analysis of the protection of the rights of the trust interests of the hidden shareholders and the ordinary creditors of the prominent shareholders.

Foreword The so-called anonymous shareholder is the actual investor, which means that although it contributes to the company, it should enjoy its shareholder rights, but for various reasons it is not registered in the company's register of shareholders, the company's articles of association and the Market Supervision Administration, but holds the company's equity on behalf of the prominent shareholder. The inconsistency between the appearance of rights and the actual capital contribution is derived from the difficulties in confirming the qualification of dormant shareholders, the limitation of the right to know, and the possibility of excluding the enforcement of ordinary creditors of prominent shareholders in judicial practice, which essentially reflects the determination of the legal relationship between dormant shareholders and prominent shareholders, with the company and other shareholders, and with third parties other than the company and shareholders, which is controversial in academic and judicial practice. This paper only from the hidden shareholders to enjoy the civil rights and interests can be sufficient to exclude the prominent shareholders ordinary creditors on behalf of the rights of the enforcement of the application for entry and preliminary combing, analysis, with a view to the practical treatment to provide some help. The judiciary has different views 1. whether the dormant shareholders can block the implementation. Through the search and analysis of the relevant cases, the court has two different ideas and views on whether the civil rights and interests enjoyed by the hidden shareholders can be sufficient to exclude the application for enforcement of the rights of the ordinary creditors of the prominent shareholders. One view is that dormant shareholders are not sufficient to exclude enforcement, while another view is the opposite, that dormant shareholders are sufficient to exclude enforcement. After incomplete statistics, the majority of cases advocate the first view. The inconsistency of judicial views makes the case handling of such problems increase the difficulty and flexibility of the argument. The core of the 2. is whether the ordinary creditors of prominent shareholders enjoy the interests of trust. Regardless of the referee's view, the core of the reasoning is whether the ordinary creditor of the prominent shareholder enjoys a trust interest and whether that trust interest can be protected in preference to the rights of the anonymous shareholder. The interest of reliance stems from the principle of commercial appearance, that is, the transaction decision made by the relative based on the trust of the registered appearance, even if the appearance of the right is inconsistent with the actual right, it should be presumed that the appearance of the right is true and valid, so as to ensure the trust interest of the relative and maintain the security of the transaction. This principle is enshrined in article 65 of the Civil Code and article 32 of the Companies Act. However, whether the ordinary creditor of a prominent shareholder is a "bona fide counterpart" or a "third party" as stipulated by the law, the law does not clearly stipulate that the "bona fide counterpart" or "third party" is limited to a third party based on equity transactions. Whether it includes a non-trading third party, the practical point of view is controversial here, which is supported by a large number of cases such as the Supreme Court and the Provincial Court. The Shandong Provincial High Court issued the "Answers to Several Questions of the Second Civil Division of the Shandong Higher People's Court on the Trial of Corporate Dispute Cases", which limited the "bona fide counterpart" or "third party" to the third party in equity transactions, and the ordinary creditors of prominent shareholders because They are not the third party in the proxy shareholding transaction and do not enjoy the trust interest based on the appearance of the equity registration right have risen to the guiding principle of trial. It is believed that "the actual funder's request for suspension of execution should be supported". The reason is that, according to Article 25 of the (III) of Interpretation of the Company Law, the subject of the system of good faith acquisition of equity is limited to third parties who have equity transactions with nominal shareholders. The scope of application of the principle of commercial appearance does not include third parties to non-equity transactions. In the case of the inconsistency between the appearance right and the actual right, according to the theory of the appearance of the right, if a bona fide third party conducts a civil legal act with the nominal right holder on the basis of trust in the appearance of the right, the effect of the civil legal act shall be protected by the law. However, if the creditor of the nominal shareholder applies for the execution of the general creditor's rights formed by the nominal shareholder due to the loan relationship with the nominal shareholder, and the creditor does not engage in civil legal acts involving equity transactions with the nominal shareholder, from the principle of the appearance of rights, the creditor at this time is not a bona fide third party of civil legal acts that need to be protected based on the appearance of the right, so its claim cannot be protected in priority over the actual right holder. However, when hearing such cases, the evidence submitted by the actual funder to prove the existence of the right should be strictly examined to find out the authenticity of the right, not only to prevent false litigation to avoid debt, but also to prevent the infringement of the actual funder's actual rights. The claim that "bona fide counterpart" or "third party" is not limited to third parties based on equity transactions, but also includes a number of cases of non-trading third parties. For example, the Supreme People's Court (2019) Supreme Law Minzai No. 46 Tuo Siwei and Liu Jin retrial civil judgment held that "even if the enforcement claim is formed before the share registration information is publicized, the creditor does not trade with the debtor based on the share registration information, and there is still the problem of protecting the creditors' trust interests at the enforcement stage. As the law clearly denies the seizure of excessive standards, the applicant for execution must give up the application for seizure of other property in order to realize the seizure of a particular property. If the trust interest of the seizure is not protected, it will not only be unfair to the applicant for execution, but also damage the trust interest of the judicial enforcement agency. Therefore, it is legitimate and reasonable that the scope of protection of bona fide third parties should not be limited to third parties engaged in transactions with respect to a particular subject matter, and that they should be extended to the executing creditors of the nominal shareholders, in the event that the actual contributors to the shares involved in the case are inconsistent with the publicized nominal shareholders." Thus, this view recognizes that ordinary creditors of prominent shareholders enjoy a trust interest, and there are even cases that extend this trust interest to the enforcement stage. Identification of dormant shareholders in 3. The Supreme Court (2016) Supreme Law No. 701 case held that an anonymous shareholder may file an enforcement objection in the enforcement proceedings and request confirmation of the shareholder's qualification. If the dormant shareholders simultaneously file a claim for confirmation of their rights, the people's court shall hear the case and make a decision together. The identification of dormant shareholders is essentially the identification of the rights of dormant shareholders. The dormant shareholder itself has the qualification of the actual investor, but it is not mentioned in the articles of association, the register of shareholders, industrial and commercial registration and other relevant legal documents, which is easy to cause the dislocation of the rights and obligations of the dormant shareholder. Due to the "hidden" nature of dormant shareholders, the identification of their identity has formed three views of "substantive elements", "formal elements" and "compromise. The substantive elements say that capital contribution is the most important element of the identification of shareholders, regardless of whether the register of shareholders, articles of association or whether the registration authority is registered is only a formal element defect, as long as the holding agreement does not violate the mandatory provisions of laws and administrative regulations, then the identification of shareholders should respect the autonomy of the parties. Article 21 of the (III) of Interpretation of the Company Law can also be understood as the identification of anonymous shareholders. The strict implementation of the principle of commercial appearance will inevitably lead to the inability to effectively protect the rights of anonymous shareholders. The compromise states that a distinction is made between the application of different standards within and outside the company. If the interests of a bona fide third party are not involved, the true meaning of the parties shall be explored in accordance with the agreement of the parties, and when the interests of a third party are involved, the commercial appearance doctrine shall be fully reflected and priority shall be given to the protection of bona fide third parties. At present, compromise is the mainstream view, but there are many disputes involving dormant shareholders, and specific cases should be analyzed in order to effectively balance the interests of the parties. Capital contribution is the key issue for the court to determine the identity of shareholders. Under the comprehensive subscription system, the qualification of shareholders is not based on the paid-in contribution, but because the equity generation holds a certain degree of secrecy, the paid-in capital contribution can prove that the anonymous shareholders have the desire to become shareholders, so the paid-in capital contribution becomes an important evidence of the identity of the anonymous shareholders. Relevant financial information, the flow of capital contributions, etc. can be used as direct evidence to determine the actual contribution. In the case of indirect contributions by dormant shareholders, multiple legal relationships need to be identified to determine the contribution. In particular, in cases where an anonymous shareholder has funds injected into the company, the court will still focus on examining the nature of the funds and distinguishing them from indirect shareholdings and private lending relationships. The equity holding agreement is the embodiment of the autonomy of the rights and obligations of the hidden shareholders and the prominent shareholders, in the absence of violation of the provisions of the legal effect, should be considered valid, only insurance, funds and other special industries, in the context of strong national supervision, the corresponding special provisions on equity holdings, such as the Interim Measures for the Administration of Equity in Commercial Banks, the Measures for the Administration of Equity in Insurance Companies, and the Measures for the Administration of Initial Public Offering and Listing, etc. Articles 10 and 12 of the Interim Measures for the Administration of Equity in Commercial Banks explicitly negate the act of holding equity in commercial banks, which requires shareholders of commercial banks not to entrust or accept the entrustment of others to hold equity in commercial banks. For insurance companies, listed companies equity holding, the court in the specific case of different circumstances also invoked different provisions to make different distinctions between the validity of the agreement. In addition, Article 28 of the "Nine People's Minutes" stipulates: "If the actual investor can provide evidence to prove that more than half of the other shareholders of the limited liability company know the facts of their actual capital contribution and have not raised any objections to their actual exercise of shareholder rights, the actual investor The people's court shall support the request to register as a shareholder of the company." In the company's informed equity holding type and incomplete equity holding type, the hidden shareholders often directly or indirectly with the company, other shareholders, influence or exercise part of the rights of shareholders, judicial practice also to a certain extent recognized the company's other shareholders of the "implied consent". Conclusion The value orientation of the judiciary can be seen from the reasoning part of the Supreme Court (2019) Supreme Court Minzai No. 46 case: "From the perspective of the value pursuit of the legal system and the value orientation of the judicial policy, the proxy relationship itself is not a normal shareholding relationship. It deviates from the company registration system, social credit system and other systems, and shareholders arbitrarily create the appearance of rights, this leads to inconsistency between the registered right holder and the actual right holder, while providing convenience to the actual investor, allowing the prominent shareholders to release false signals of asset prosperity to the outside world, causing confusion to the company's legal relationship and registration information, and increasing the overall commercial risks and costs of the society, which should be borne by the actual investor ...... If emphasis is placed on recognizing and protecting the rights of the actual investor to prevent implementation, objectively, it will have the legal effect of encouraging the evasion of supervision and debt through the holding of shares, because the 'holding agreement' is a hidden relationship, the two sides usually have a special identity or interest relationship, it is easy to choose whether to avoid legal risks by 'holding on behalf of the external risks to be faced. Therefore, the determination of the rights of the actual contributor cannot exclude enforcement and is conducive to the realization of the values of security, order and efficiency that the law focuses on and pursues in the commercial field". Through the summary of the theory and judicial practice experience, it can be concluded that it is difficult for the hidden shareholders to exclude the common creditors of the prominent shareholders to apply for the enforcement of the holding rights. The enforcement objection may be accompanied by a claim for shareholder identification, and it is argued that the rights of the anonymous shareholder should be protected in preference to the applicant's trust interests.

2022-05-13

Point of View... The way of relief of the endorser in the case of the refusal of the bill of exchange.

2022-05-11