Gazette Case: Nominee Equity Registration

Gazette Case: Zhang Jianzhong v. Yang Zhaochun

A nominee-shareholding arrangement between a beneficial investor and a nominee shareholder is valid absent statutory invalidity, but a request to register the beneficial investor as shareholder must still satisfy the transfer and other-shareholder-consent rules for a limited liability company.

Holding

A nominee-shareholding arrangement between a beneficial investor and a nominee shareholder is valid absent statutory invalidity, but a request to register the beneficial investor as shareholder must still satisfy the transfer and other-shareholder-consent rules for a limited liability company.

Issues

beneficial investor and nominee shareholdervalidity of nominee-shareholding agreementmajority consent of other shareholders