Reference Case: Shenzhen Zhongnan Growth Investment Partnership v. Liao Zhiqiang
The Hunan Higher People's Court examined the listing-clearance termination arrangement together with the later supplemental restoration agreement and held that the post-failure buyback mechanism still reflected the parties' true intent. Because the company did not complete the contemplated listing and the agreed restoration condition was met, the controller had to repurchase the investor's shares.
Holding
The Hunan Higher People's Court examined the listing-clearance termination arrangement together with the later supplemental restoration agreement and held that the post-failure buyback mechanism still reflected the parties' true intent. Because the company did not complete the contemplated listing and the agreed restoration condition was met, the controller had to repurchase the investor's shares.