A Case Study On The Equity Holding Agreement Of Insurance Company

This article takes the form of case analysis.The case chosen is one of the disputes over the shareholding agreement of insurance companies heard by the Third Circuit Court of the Supreme People’s Court(hereinafter referred to as the "Supreme Court").Although the case deals with the validity of the shareholding agreement commonly seen in the perspective of corporate justice,there are a lot of theoretical exploration and practical cases that can be used for reference.It should not be the focus of academic attention,but because the case involves the right of ownership.Whether the financial regulations of insurance industry affect the validity of contracts or not,under the background that financial supervision departments strictly guard against financial risks and strengthen financial supervision,whether financial regulations can influence the validity of equity holding agreements and even ordinary civil and commercial contracts by means of social public interests,has aroused extensive discussions in academic and practical circles.Therefore,it is necessary to differentiate the theory on which the judgment opinions in this case are based on,and finally to construct a judicial system to determine the validity of the contract in the public interest.This article is divided into four chapters.The first chapter briefly introduces the case,and summarizes the two controversial focuses of the case: the legal basis of the validity of the insurance company’s equity ownership agreement and whether violation of the regulation of the insurance industry can damage the public interest.Chapter two focuses on the first controversy,and discusses the basis for determining the validity of the equity ownership agreement of insurance companies from the perspective of company law,contract law and insurance regulation.It clarifies that the financial regulation has the normative basis for determining the validity of the contract.Chapter 3 centers on the second controversial focus,through exploring the relationship between the insurance regulation and the prohibitive provisions of stock ownership and the violation of social and public interests,clarifies the content of the validity determination of the insurance company stock ownership agreement,categorizes the cases of contract invalidity caused by damage to social and public interests,and finally determines the principles and standards for the determination of social and public interests.Chapter IV studies the procedure of identifying the damage to public interests caused by financial supervision provisions,and suggests that the system be constructed from the perspectives of identifying subjects andidentifying procedures.The main point of this paper is that financial regulation is not mandatory in laws and administrative regulations,but financial regulation has the nature of social public interest in maintaining financial order and social stability.Therefore,judicial institutions can follow certain procedures to judge the validity of contracts based on the violation of financial regulation.On the contrary,if the procedural provisions are not followed,the judiciary should not directly determine in the judgment documents that the violation of financial regulation constitutes damage to the public interest of society,and then serve as the legal basis for determining the invalidity of the contract.