Lawyer’s Interpretation: Li Guoqing’s Yu Yu’s Strike Controversy Focuses on Holding Shares for Children

Lawyer’sInterpretation:LiGuoqing’sYuYu’sStrikeControversyFocusesonHoldingSharesforChildren
WhenDangdang’srighttocompetewasstagedagain,LiGuoqing”robbed”theofficialsealofDangdangCompany,whichattractedmuchattention.Howtosplittheshareholdingofhusbandandwife?Whoownstherighttoholdtheson’sshares?Conduct,Sauna,YewanginvitedHanXiao,alawyerfromBeijingKangdaLawFirm,andZhaoZhan,alawyerfromBeijingZhilinLawFirm,toconductprofessionalanalysisontheabovekeyissues.Votingrightsareindispute:SaoYeYe:Atpresent,LiGuoqingandYuYuarenotdivorced.Whatshouldbetheproportionofvotesifthemergershareholdersmeet?ZhaoOccupation:Thisissueissomewhatcontroversial.Duringthedurationoftherelationshipbetweenhusbandandwife,andthensetupacompany,equityisthecommonpropertyofthehusbandandwife,inprinciplecalledequityisdividedequally.Butthissplitisonlywhenthedivorcedividestheproperty.Whenthereisnodivorceorthedivorceproceedingshavenotended,theneachpartyhasonlynominalshares,andthevotingrightsshouldbeexercisedinaccordancewiththis.Becausealthoughthepropertyrightsofthehusbandandwifearesharedproperty,thispropertyreferstoownershiprights,andmanyoftheequityrightsareidentityrights.Someofthem,suchasvotingrights,areanidentityrightthatisexclusivetonominalshareholders.Atpresent,therearecertainproblemsinvotingforsharesheldbytheactualholderswithoutcompletingthedivorcesplit.HanXiao:Webelievethatthehusbandandwifejointpropertysystemhasaninternaleffectbetweenhusbandandwife.Theeffectofhusbandandwifejointpropertycannotbreakthroughtheirrelativity,andcannotbreakandaffecttheeffectivenessoftheshareholderregisterandthepublicityofindustrialandcommercialpropertyrightsinformation.Thecompany’sshareholdersshouldstrictlyabidebythepubliclyannouncedshareholdingstructurewhenconductingavote.Otherwise,weactuallybelievethatitviolatesthefundamentalsofthelimitedcompany’seligibilityandfitandharmstheinterestsofothershareholders.Ithinkitisactuallynecessarytofollowoneoftheirownsharestovote.Accordingtotherelevantprovisionsofthe”CompanyLaw”,theproceduresoftheshareholders’meeting,votingprocedures,etc.,shouldbestipulatedbythecompany’sarticlesofassociation.Ashareholdermeetingwillrevisethecompany’sarticlesofassociation,increasetheresolutiontoreducetheregisteredcapital,andmergeandsplitthedissolutionandchangethecompany’sresolution,andmustbeapprovedbymorethan2/3ofthevotingrightsoftherepresentatives.Therefore,ifthereisnodivorcebetweenLiGuoqingandhiswife,theshareholders’meetingwillnotbeabletomakeeffectiveresolutions.Ithinkthisstatementisincorrect.SaunaNight:Accordingtotheinformationregisteredinthecurrentindustrialandcommercialinformationsystem,YuYuholdsmorethan60%oftheshares.Dangdang’sstatementisthatYuYuhas52shares.23%,canLiGuoqingtriggeravotewithoutdivorce?ZhaoOccupation:Thisissueiscontroversial.Ipersonallythinkthatthevotingshouldbebasedonthedistributionratioshownintheindustrialandcommercialregistrationsystem.Ifthedivorceiscompletedorthetwopartieshavereachedanagreement,theycanusetheactualshareholdingratio.Nowthereisanewvariableinthesituation.Thechildrenofbothpartieshold18%oftheshares.Ifthesituationistrue,evenaccordingtoLiGuoqing’salgorithm,hisactualshareratioislessthan46%,whichmaybelessthan40%.Itmaybecombinedwithothersmallshareholders.Nothalf.Whoownsthe18%votingrightsheldbythechild?SaunaYewang:Let’stalkabouttheissueofgeneration-to-generationholding,becausetheirson’sequityisheldbytwohusbandsandwives,cantheshareholderbeabletoexercisevotingrights?HanXiao:Toholdthecorrespondingvotingrightsforcopyright,youmusthaveastatutoryregistrationprocessinadvance.Ifananonymousshareholderwantstoexercisetherighttovote,itmustbedealtwithexplicitly.Onlywiththeapprovalofmorethanhalfoftheothershareholdersofthecompanycantheshareholdersbequalifiedtoexercisetheirvotingrights.Ifithasnotundergoneexplicitprocessing,thereisnocorrespondingvotingright.SaunaNightNet:Justwhenitcomestoregistration,isitonceregisteredinthebusinessinformationsystem?Orthecompany’sinternalcharter?HanXiao:Generally,wethinkthatbothshouldberegisteredaccordingly.Atpresent,weneedtomakeeffectivejudgmentbasedonthecompany’sarticlesofassociation.ZhaoOccupation:Itisnecessarytoclearthesourceofthesharesheldonbehalf.Injudicialpractice,signingaproxyagreementforholdinginsteadofexercisingtherightsofshareholders,includingvotingrightsanddividends,isatemporaryagreement.Inanothercase,hissharescamefromgiftsfromothershareholders.Ingeneral,thegiftcontractrequiresabudget.Ifthereisnoprevious,thedonorcanberevoked.Unlesscharitablegiftscannotberevoked,somepromisetodonateandthendon’t.Notarizedgiftcontractscannotberevoked.Thiscase,ifitissaidthatthereisaproxy,itwillbeverycomplicated,anditwillbecomethefocusofthedivorceproceedingsinvolvingbothparties.Atpresent,wedonothaveaverycomprehensiveinformation,itisdifficulttomakeajudgment.SaunaNightnet:If,atthattime,thesonsofthetwodidnothavethislegalholdingarrangement,ifthesonsarenowoflegalage,cantheydirectlyexercisetheirvotingrights?ZhaoOccupation:Ifthehusbandandwifesharethecommonpropertyasgifts,thesonhasnoactualexpenditure.Canthespousecancel?Itispossibletorevokethegift,butthequestionofwhethertohold9%or18%.HanXiao:Ifthechildreachestheageof18,hemustbedealtwithaccordingly.Ifthepropertyhasbeengivenbeforethedivorce,andbothpartiesagree,itislegalandvalid.Aslongasyouareoflegalage,makechangesaccordingly.SaunaNightnet:Thegiftedsharesmustgothroughapublicregistrationprocessbeforetheycancontinuetoexercisetheirrighttovote?Zhaooccupation:yes.Itisnecessarytoregisterthechangeofindustryandcommercebeforeitisagiftcontract.Ifthereisnochange,itmeansthatthereisnoactualbudget.Sauna,YeWangLuYifuChenWeichengChengZijiaoInternDanaEditorXuChaoProofreadingChenDiyan