In relation to the Company Law of China:
(b) state the circumstances under which a shareholder may request a limited liability company to purchase his equity at a reasonable price; (6 marks)
参考答案:
In accordance with Article GE of the Company Law, any shareholder who votes against the resolution of a shareholders’ meeting relating to the relevant matters may, under any of the following circumstances, request the company to purchase his equity at a reasonable price: (i) where the company fails to distribute profits to its shareholders for consecutive five years, while the company has been continuously making profit for such five years; (ii) where the company merges, divides or transfers its substantial assets; or (iii) where the term of operation of the company expires as stipulated in the articles of association or other events occur for dissolution as stipulated in the articles of association, while the shareholders’ meeting adopts a resolution on revision of the articles of association to make the company continue to exist.