⿻ Property Law 

Does a Parking Space Tenant Have the Right of First Refusal to Buy the Parking Space?

By Li Xiang

In many residential areas, parking spaces “leased and to be sold” mean ones that are currently leased by the property developer to property owners and will be sold at a later time. It is very likely that a small problem in the process of leasing or selling such a parking space cause a dispute between the tenant, buyer and developer (or landlord). The most disputed issue is whether the parking space tenant has the right of first refusal to buy it and how the tenant could obtain remedies in case of infringement of their right of first refusal to buy the parking space. In this article, I would like to try and discuss this issue based on my practical experience............................More

⿻ Company Law 

Stop Using Buyback Clauses on the Condition of IPO 

By Bai Lituan

As a practice in the Chinese PE/VC investment sector, in order to control the investment project information asymmetry risk, prevent malicious default by founding shareholders and give investors a guarantee that they can withdraw the project safely, the investment agreement includes valuation adjustment mechanism clauses under which founding shareholders and the target company have the obligation to buy back its shares held by investors. This practice is widely used for a long period of time and acknowledged by legal authorities. However, there are a lot of cases on the investment market and among startup founders in which founding shareholders fail in lawsuits because they are unable to fulfill the buyback obligation and are restricted from high-level consumption. With extensive experience in the market game, many founders refuse to sign an investment agreement containing buyback clauses, while investors are reluctant to actually invest without being “guaranteed” by buyback clauses. Consequently, buyback clauses appear to be an obstacle to closing a PE/VC investment deal......................More

⿻ New Laws, Rules and Regulations 

1. Instructions on Dealing with Criminal Cases of Impaired Driving /SPC, etc. 

2. Interpretation of Several Issues Concerning General Provisions of Part III Contract of Civil Code of the People’s Republic of China /SPC 

3. Regulations of Payment Service Providers Other Than Banks/SC 

4. Decision to Modify Regulations on Issues Concerning Establishment of International Business Courts by Supreme People’s Court /SPC 

5. Regulations on Production and Management of Self-flying Airplanes in the Civil Aviation Sector /MIIT

6. Human Organ Donation and Transplantation Rules/CS