Laws of the People's Republic of China

the Supreme People's Court

Announcement of the Supreme People's Court of the People's Republic of China

Provisions of the Supreme People's Court about Several Issues on the Application of the Company Law of the People's Republic of China (I) adopted at the 1382nd meeting of the Adjudication Committee of the Supreme People's Court on March 27, 2006, are hereby promulgated and shall enter into effect as of the day of May 9, 2006.

the Supreme People's Court of the People's Republic of China

April 28, 2006

Provisions of the Supreme People's Court about Several Issues on the Application of the Company Law of the People's Republic of China (I)

(Adopted at the 1382nd meeting of the Adjudication Committee of the Supreme People's Court on March 27, 2006 Fa Shi [2006] No. 3)

In order to correctly apply the Company Law of the People's Republic of China amended at the 18th session of the Standing Committee of the Tenth National People's Congress on October 27, 2005, the concrete application of the Company Law by the people's courts in the hearing of relevant civil disputes are formulated as follows:

Article 1

If the civil act or event involved in a undecided case of the people's court or a case newly accepted by the people's court but which occurred prior to the implementation of the Company Law, after the Company Law is brought into effect, the laws, regulations and judicial interpretations effective at that time shall apply to the case.

Article 2

Where a lawsuit is brought to the people's court prior to the implementation of the Company Law because of the disputes over any civil act or event, if there is no clear provision in the effective laws, regulations or judicial interpretations at that time, such case shall be dealt with in the light of the relevant provisions of the Company Law.

Article 3

When a lawsuit is lodged to the people's court by the plaintiff for either of the reasons mentioned in Paragraph 2 of Article 22 and Paragraph 2 of Article 75 of the Company Law and if it exceeds the time limit as prescribed in the Company Law, the people's court shall reject it.

Article 4

The expression "180 consecutive days or more" mentioned in Article 152 of the Company Law shall be a full share-holding period when the shareholder(s) initiate(s) a lawsuit to the people's court. The expression "aggregately holding 1% or more of the total shares of the company" means the aggregate of the shares, which is held by two or more shareholders.

Article 5

The Company Law shall not apply to the review of a case, which a final judgment has been made by the people's court before the implementation of the Company Law.

Article 6

These Provisions shall enter into effect as of the day of the promulgation.