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A foreign company has been adjudicated by the court in its registered place to enter bankruptcy liquidation proceedings. The foreign company submits the effective judgment document to the Chinese court to prove that it is in bankruptcy liquidation status. Can this fact be directly recognized as a fact discovered by the Chinese court, without the need for the parties to apply for recognition and enforcement of the above judgment separately? -- Answers to Several Difficult Issues Concerning Foreign-related Commercial Trials (Part Two) (4)

by the Ningbo Intermediate Court

September 8, 2023

Answer: Article 14, Paragraph 1 of the Lawof the Republic of China on the Application of Law in Foreign Related Civil Relations stipulates: "The civil rights capacity, civil conduct capacity, organizational structure, shareholder rights and obligations of a legal person and its branches shall be determined by the law of the place of registration. Therefore, the fact of the existence status of a foreign company shall be determined by the law of the place of registration of the foreign company. The ruling or judgment of a foreign court in the place of registration that a foreign company enters bankruptcy liquidation proceedings is generally based on the law of the place of registration. As the judgment of the foreign court only serves as evidence for the determination of relevant facts by the Chinese court, and the relevant facts are within the scope of personal law adjustment and do not involve property enforcement in China, the determination of the existence status of the foreign company in the judgment can be directly determined as a fact ascertained by the Chinese court, There is no need for the parties to apply for recognition and enforcement of the above judgment separately.