DEALS
Zhong Lun Represented a CK Asset and New World joint venture and Won Four Equity Dispute Cases
Zhong Lun Represented a CK Asset and New World joint venture and Won Four Equity Dispute Cases
In May 2019, Zhong Lun represented Niceline Company Limited, a joint venture of CK Asset Holdings Limited and New World China Land Limited, and won four equity dispute cases before Beijing court. The market value of the transactions in the above four cases is approximately RMB 60 billion.
The main issues of these cases included whether an indirect foreign minority shareholder can invoke Clause 52 (2) of the PRC Contract Law and seek declaration of the contract to be void, and whether the shareholders dispute offshore had any relevance to the validity of the onshore transactions. Both Beijing Fourth Intermediate Court and Beijing High Court ruled that the indirect foreign minority shareholder shall claim its shareholder rights pursuant to offshore laws and shall not confuse the “rights of a third party" under Clause 52 (2) of the PRC Contract Law with its shareholder rights. Both courts rejected all of the Plaintiff’s claims and found for Niceline Company Limited.
Zhong Lun partner Decai Zhang led the cases. Also worked on these cases were non-equity partners Nelly Zhang and Qiuqin Wan, and associates Peipei Su and Xi Luo.
