On The Determination Of The Legal Relationship Of Nominal Holding Of Shares

The issue of nominal holding of shares is not clearly defined in the Company Law of China.Although some positive responses have been made in Judicial Interpretation of the Company Law(3).However,there is still no clear legal guidance in judicial practice about this legal issue.In economic practice,there are a large number of disputes over nominal holding of shares.Therefore,it is worth discussing the legal issue involved in how to solve the nominal holding of shares.The author cited an example about Sichuan company was sued Shanghai company for confirming the shareholder's qualifications.The author referenced relevant laws and regulations and judicial interpretation and tried to comment on the focus of controversy in this case.First,is there a relationship about nominal holding of shares between the Shanghai company and Mr.Wu? Second,does Sichuan company have a shareholder of Shanghai company? This article discussed the legal issues which related to the focus of the dispute in this case to solve the first question.The legal issues included:whether Mr.Wu is the nominal shareholder of the company?How to protect the rights of actual investors without contract? For question two,the author demonstrate the shareholder's qualification of Shanghai company by analyzing the criteria for the determination of shareholder's qualification.Finally the author throw out a suggestion based on the research of this case.Specifically speaking,the solution of this legal issue could be clarify the relevant legislation on nominal holding of shares,and determine the form of the contract.The most important is improve the various systems of actual investors.