EMPOWERED BY INVISIBLE STRENGTH

EMPOWERED BY INVISIBLE STRENGTH

—— COMMITTED TO THE GREATER GOOD ——

Equity Inheritance Disputes

         Cause of action:Equity Inheritance Disputes

Case after:Cao is the spouse of Party XXX and registered for marriage with Party XXX on January 25, 2013. Party XXX is a shareholder of A Co., Ltd., which has only 2 shareholders. Company A was established on September 27, 2016. On June 26, 2018, Cao died of illness. Now Cao's heir is suing to split the shares of Company A held by Party XXX and belonging to the estate of Company A's spouse Cao.

Results:Successfully reversed the situation by turning the split equity into a property interest corresponding to the split equity.

Referee Summary:This case is the death of the spouse of the natural person shareholder, not the death of the natural person shareholder, so the six A branches can only apply for the property rights and interests of the split shares, but cannot apply for confirmation of shareholder qualifications.

Case assessment:

This case is a dispute over the inheritance of equity. Six plaintiffs sued to divide the estate of the defendant's spouse Cao.A limited company33.25 per cent equity. During the trial of this case, the plaintiff's request for a split of shares was not challenged at the beginning, and only the share and value of the split of shares were determined. After carefully studying the legal provisions and looking for relevant cases, it is found that the plaintiff does not have the basis for dividing the equity. Article 75 of the Company Law stipulates that "the death of a natural person shareholder" is not "the death of the spouse of a natural person shareholder". Based on this, the plaintiff can only request the division and inheritance of the corresponding equity value, but not the division and inheritance of the equity. Finally, the court of first instance supported our view.

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