Gazette Case: China Great Wall Asset Management Co., Ltd., Jilin Branch v. Jilin SME Credit Guarantee Group Co., Ltd. and the Jilin Municipal SASAC
Where the debtor is already insolvent and the relevant participants know of the creditor relationship, a court may impose damages on a transferee that cooperates in moving core assets by means such as a gratuitous transfer of state-owned legal-person shares in order to evade debt. As for the institution exercising the state's investor rights, Article 20 of the Company Law does not need to be applied automatically if the creditor can already obtain relief from the transferee and there is no proof of separate loss independently caused by that institution.
Holding
Where the debtor is already insolvent and the relevant participants know of the creditor relationship, a court may impose damages on a transferee that cooperates in moving core assets by means such as a gratuitous transfer of state-owned legal-person shares in order to evade debt. As for the institution exercising the state's investor rights, Article 20 of the Company Law does not need to be applied automatically if the creditor can already obtain relief from the transferee and there is no proof of separate loss independently caused by that institution.