The Supreme People's Court publishes the reply on the non-retroactivity of Article 88, Paragraph 1 of the Company Law.

On December 24, Jinshi Data reported that the Supreme People’s Court announced the reply on the non-retroactive application of Article 88, Paragraph 1 of the Company Law, which will be implemented from that day onwards. The reply clarifies that Article 88, Paragraph 1 of the Company Law, which will be implemented from July 1, 2024, applies only to the transfer of equity that occurs after July 1, 2024, and before the expiration of the capital contribution period. For disputes over capital contribution obligations caused by the transfer of equity before July 1, 2024, the people’s court should handle them in a fair and just manner in accordance with the spirit of the original Company Law and other relevant laws. After the implementation of the reply is announced, judicial interpretations previously issued by the Supreme Court that are inconsistent with the provisions of this reply will no longer apply.