Gazette Case: Kunming Oke Trading Co., Ltd. and Xiong Zhimin v. Li Changyou et al.
A transaction framed as an equity transfer but functioning as debt security should be treated as an equity transfer by way of security in light of the parties' dealings, re-transfer conditions, and post-transfer control arrangements. The secured party may hold nominal registration, but does not automatically acquire substantive shareholder rights such as voting, dividends, or management power.
Holding
A transaction framed as an equity transfer but functioning as debt security should be treated as an equity transfer by way of security in light of the parties' dealings, re-transfer conditions, and post-transfer control arrangements. The secured party may hold nominal registration, but does not automatically acquire substantive shareholder rights such as voting, dividends, or management power.