On July 22, 2021, the second hearing was held for a shareholder qualification confirmation dispute represented by our firm.

One of the key issues in dispute was whether the conditions for the "disclosure of identity" of an "anonymous shareholder" had been met.

The plaintiff submitted a Shareholding Agreement to prove that they were the actual investor of the equity in question.

We argued that the basis for an actual investor to "disclose their identity" and become a shareholder is that the source of their equity acquisition must be legal. The Shareholding Agreement clearly stated that the actual investor acquired the equity through a transfer. However, this transfer violated Article 71 of the Company Law, as it was conducted without notifying our client, obtaining their consent, or inquiring whether they would waive their right of first refusal. Therefore, the equity transfer in question has not yet taken legal effect, and the claim to confirm the plaintiff’s shareholder qualification lacks a legal basis.