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On April 14, 2021, the Huangpu District
People¡¯s Court of Shanghai (hereinafter referred to as the ¡°Shanghai Huangpu
Court¡±) held a meeting to release a white paper on the trial of private
business related cases in 2018-2020. Chen Meng, Member of Party Leadership
Group and Vice President of the Shanghai High People¡¯s Court (hereinafter
referred to as the ¡°SHPC¡±), Fan Changchun, Secretary of Party Leadership Group
and President of the Shanghai Huangpu Court, persons in charge from the
departments of the Shanghai High People¡¯s Court, the Shanghai No.2 Intermediate
People¡¯s Court, the Huangpu District Committee of Commerce, and Huangpu
District Association of Industry and Commerce, representatives of private
businesses and media reporters attended the meeting. Zhang Ying, Member of
Party Leadership Group and Vice President of the Shanghai Huangpu Court,
briefed on the court¡¯s trial of commercial disputes involving private
businesses.
According to the white paper, from 2018 to
2020, the Shanghai Huangpu Court concluded a total of 3,299 commercial disputes
involving private businesses. Among these cases, contract disputes were still
the main form of private business related disputes, and covered loans, trading,
service, equity transfer, contracting, partnership, advertising and
entrustment. In addition, disputes in connection with shareholder qualification
confirmation, shareholders¡¯ right to know, shareholders¡¯ capital contribution,
company surplus distribution and other company related disputes also accounted
for a certain proportion. Thanks to the establishment of diversified conflict
and dispute resolution mechanisms, more than half of the above cases were
finally settled by mediation or withdrawal, and the trial periods were
generally short. There were 23% of the cases settled within 20 days, and nearly
80% of the cases were settled within three months.
Due to the flexible and changeable
operation mode of private businesses and their strong ability to adapt to the
market, various new transaction types emerge in an endless stream, which also
caused the frequent occurrence of new-type cases. Take some disputes related to
we-media platforms arising from service contract disputes for example. Some
private businesses entrust an advertising company to invite artists to film
short videos for promotion on we-media platform accounts, but they disputed on
the way of video presentation, and the release effects of the we-media. There
was certain difficulty in the determination of facts and law application for
the disputes caused by these new type advertisement release forms.
The white paper pointed out the problems
that existed in the establishment and operation of private businesses, for
instance, weak financing risk prevention, lack of awareness of credit
information investigation, and a weak sense of social responsibility, etc. In
addition, some private businesses had such problems as weak awareness of
evidence in the actions.
The briefing also included the relevant
working mechanisms of the Shanghai Huangpu Court¡¯s for trying commercial
dispute cases involving private businesses according to law and improving the
judicial protection of private businesses. First, to step up efforts to build a
professional trial team, set unified adjudication yardstick, form unified
adjudication guidance, improve the diversified conflict and dispute resolution
mechanism and the service of legal documents, promote the optimization and
reform of the trial management mode. Second, to exert the principle of the
auxiliary functions of judicial extension, promote law in businesses in an
innovative way, and for the problems found in the trials, report commercial
trials by sending judicial opinions and releasing a white paper on trials, etc.
so as to warn of operational risks and guide operation in compliance with laws
and regulations. Third, to resolve contract disputes related to the COVID-19 in
a variety of ways, with a view to balancing the legitimate rights and interests
of all parties affected by the pandemic and providing powerful judicial
services and guarantees for the development of private businesses.
>> Chinese Version
