The Supreme People's Court ("SPC") on 20 February released the Decision of the Supreme People's Court on Amending the Provisions on Some Issues concerning the Application of the Company Law of the People's Republic of China (the "Decision"), to be effective from 1 March 2014.

The Decision comprises 13 items, mainly focusing on the relevant adjustments made based on the changes in serial numbers of articles of the Company Law. According to the Decision, a court shall uphold a claim raised after the establishment of a company by the company, its shareholders or creditors that a shareholder has taken action constituting withdrawal of contributed capital on the grounds that the shareholder has fallen under any of the following circumstances and has damaged the interests of the company: (1) the shareholder prepares fraudulent financial and accounting statements to falsely increase profits for distribution; (2) the shareholder transfers his contributed capital by creating a false creditor and debtor relationship; (3) the shareholder transfers his contributed capital through associated transactions; or (4) the shareholder withdraws its contributed capital through other illegal means.