Gazette Case: Dilutive Capital Increase

Gazette Case: Huang Weizhong v. Chen Qiangqing et al. Shareholder Status Confirmation

A fictitious capital increase that dilutes an existing shareholder's stake without a valid shareholder resolution remains invalid even if registration formalities were completed, and the original shareholding ratio should be restored.

Holding

A fictitious capital increase that dilutes an existing shareholder's stake without a valid shareholder resolution remains invalid even if registration formalities were completed, and the original shareholding ratio should be restored.

Issues

fictitious capital increasedilution of existing shareholdingeffect of registration filing