Professional Interpretation

In 2013, a well-known American investor Aileen Lee took the lead in referring to startups with a valuation of more than $1 billion in private equity and public markets as "unicorns". The notable characteristic of "unicorn" companies is that they are in their infancy stage. Not well-known, but almost dominates the market it belongs to. With the rapid development of China’s socialist market economy, unicorn companies including Ant Financial and Didi Chuxing have emerged one after another. The dispute resolution team of Beijing Docvit Law Firm launched the "Unicorn The“legal service product line of animal enterprises” came into being under this background. This article is the second in a series of articles about the game of company control of the product line of the unicorn enterprise. Through in-depth and simple demonstrations of the market status, legal principles and judicial practice, the article will provide a message to help the rise of the "unicorn".

As the symbol of corporate legal person identity and the symbol of the power of company, official seal is the concrete expression of company’s will, so reserving and using seals shall be the necessary point in holding control over the company. Beijing Docvit Law Firm Dispute Resolution Team has resolved plenty of disputes about seals recently, so this paper shall explain relevant legal propositions about seals and provide legal advice in order to assist client enterprises in process of seizing control over the company, based on judicial precedents, in accordance with PRC Company Law, etc.

Different from normal trademark confusion, trademark reverse confusion refers to the condition that posterior trademark user has rendered the trademark a high reputation through frequent and wide use so that relevant consumers can easily mistake the goods/service of the prior trademark owner as the posterior’s. The main function of trademark is to distinguish the origins of goods and service. In modern China with the development of economy, the items of goods and service are too numerous to enumerate, so, a well-known, stable and effective trademark is helpful to make a company’s goods/service distinguish from other goods/service in the market. To protect the Intellectual Property of enterprises and protect enterprises’ trademarks to maximum degree, in accordance with legislation and judicial practice, Beijing Docvit Law Firm Dispute Resolution Team hereby conducts a legal research on trademark reverse confusion and summarizes relevant typical cases to present to readers.

As same as most of financial instruments, the private equity investment fund is also an arrant “imported good” in Chinese market. Until the end of 1980s, the private equity investment fund sprout dominated by government, invested in high-tech enterprise and shaped by venture capital fund was appeared in China. Compared with the U.S. private equity investment fund with practical operation experience for almost 70 years, both the private equity investment fund manager and LP have obtained more mature experience, and the professional level of all relevant groups cannot be matched for Chinese private equity investment fund in later start.

Due to the exclusion application of The New Regulations on Asset Management, the venture capital funds and the government industry funds have been in the state of no scope, no system and no regulation for a long time. With the introduction of The Notice, the venture capital funds and the government industry funds are vindicated for the first time in the private equity fund investment, and the parent funds of venture capital will usher in spring. In this article, the influence of The Notice on the capital contribution made by the financial institution LPs will be mainly interpreted, and on the basis of the analysis on The New Regulations on Asset Management, the application and special key points of The Notice will be sorted.

The participants of private equity funds in PPP projects usually include the governments, the government-guided funds or the governmental investment and financing platform companies, financial institutions and social capital participants.

The classification draft of civil code was deliberated at the Fifth Meeting of the 13th Standing Committee of the National People’s Congress for the first time on March 11, 2018. The six compilation systems were used in the draft, and it also meant the formal formation of legislation style of Chinese characteristic civil code. Wherein, the right of personality and tort liability were also independently compiled. In order to preferably cope with the new challenge brought to the production and life of the masses under the background of Internet age, the draft of right of personality compilation and draft of tort liability compilation of the civil code were deliberated respectively in the 13th Standing Committee of the National People’s Congress for three times on August 22, 2019. These two legal drafts which were related to the vital interests of the public continued to be modified for many times in the third copy editing, and maintained the public interests from the angle of responding to social concern.

As The Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (YF [2018] No. 106) jointly issued by the People’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission and State Administration of Foreign Exchange was introduced on April 27, 2018, the channel business has been increasingly strictly supervised. The channel business cannot penetrate into the underlying assets as the business chain is too long; thus, it is difficult to control its potential risks. Utilizing the trust channel to cover the risk essence may be involved at the time of carrying out such business; thus, the disputes on whether it should be invalid as it covers the illegal purpose in the legitimate form have been widely reported. Article 93 of The Minutes of Meetings on the Civil and Commercial Trial Work of the National Courts (Draft for Comments) clearly defines the effectiveness of channel business within the transitional period of the implementation of the new regulations on asset management, and the basic spirit of the Minutes of Meetings conforms to the consistent judgment though of the Supreme Court.

CRS has the troubleshooting lag phase for at least 2 years as same as FATCA act implemented by the United States at the beginning. After being calm for two years, CRS information exchange case around the world begins to take place frequently.

The shareholders shall exercise the right to claim surplus distribution under the conditions that the subjects are the company’s shareholders; the company has profits to be distributed and a profit distribution scheme has been made by the resolution of the Board of Shareholders, etc. When the shareholders exercise their rights to claim surplus distribution in the practice, various unexpected situations may occur, and the dispute resolution team of Beijing DOCVIT Law Firm will analyze the situations of defective capital contribution in such exercise, no resolution of the Board of Shareholders, loss of shareholder status, etc. in combination with relevant cases.