Gazette Case: Shanghai Pudong New Area People's Procuratorate v. Shanghai Anji Biotechnology Co., Ltd. and Zheng Ge
Where an unlisted joint-stock company raises funds by using intermediaries or individuals to publicly market transfers of its shareholders' shares to unspecified members of the public, or where the purportedly targeted transfers lead to more than 200 shareholders, the conduct is treated in substance as an unapproved public stock offering rather than an ordinary private share transfer. The company and its directly responsible managers may therefore commit the crime of unauthorized stock issuance.
Holding
Where an unlisted joint-stock company raises funds by using intermediaries or individuals to publicly market transfers of its shareholders' shares to unspecified members of the public, or where the purportedly targeted transfers lead to more than 200 shareholders, the conduct is treated in substance as an unapproved public stock offering rather than an ordinary private share transfer. The company and its directly responsible managers may therefore commit the crime of unauthorized stock issuance.