Judicial Determination Of The Validity And Termination Of The Equity Transfer Contract ——Take The Case Of The Equity Transfer Dispute Of Yubai Company As An Example

In commercial transactions for the pursue benefit maximization,the dormant shareholders often appears in practice,the defect of the equity transfer case,the court in such commercial courts if there is no direct provision in the commercial law basic principle of civil law and civil law is usually refer to apply specification,but the commercial contract is different from general civil contract,refer to apply legal norms and cannot meet the demand of practice,Therefore,it is necessary to improve relevant legislation and further clarify the application of law in judicial practice.Practice,termination right in the civil code has been identified as before the other party only enjoys,"dextrys company v yu-mei feng" as the Supreme Court issued a case for the first time to determine the direction of the party in breach of contract rescission,the practice admits the breaching party contract rescission of the case is also more and more,"nine people notes," civil code "releasing,It can be seen that the contract termination right of the breaching party has been gradually determined in legislation and judicial practice,but there are still many areas to be improved in the application process of the new law.Taking the dispute case of Equity transfer of Yubai Company as an example,this paper focuses on the following issues: whether the Equity Transfer Agreement and the Supplementary Agreement are valid;The Equity Transfer Agreement and the Supplementary Agreement shall be continued or terminated as the contribution of the hidden shareholder is illegal money.This paper discusses in detail the general requirements of the contract’s effectiveness,the influence of the hidden shareholders on the effectiveness of equity transfer,the legal and agreed conditions of contract termination,and whether the defaulting party has the right to contract termination.Starting from the dispute over equity transfer of Yubai Company,this paper summarizes the legal effect of defective equity transfer and the benefits of the right of termination of contract enjoyed by the defaulting party in China’s current judicial practice,and puts forward specific suggestions and solutions on the level of legal application in judicial practice.