From: Judiciary answers to 14 DifficultQuestions about Foreign-related Commercial Trials By Ningbo Intermediate People's Court, Zhejiang Province, PRC

Question: The overseas parent company removed the legal representative of the domestic wholly foreign-owned enterprise in the form of adocument. How should the applicable law be determined in the dispute about whether the removal document and removal procedure are effective?

Answer: The validity of the document of the foreign parent company replacing the legal representative of a wholly foreign-owned enterprise in China is essentially related to the civil rights capacity, civil capacity, organizational structure, shareholders' rights and obligations of the foreign parent company. In accordance with the provisions of Article 14 of the Law of the People's Republic of China on the Application of Law on Foreign-related Civil Relations, the law of the place of registration or the law of the principal place of business of the foreign company shall be applied for examination. In such cases, the court should first ask the parties to provide complete articles of association of the overseas parent company, and review the effectiveness of the replacement documents according to the articles of association; If there is no provision in the Articles of Association, the law of the place of registration or the law of the principal place of business of the overseas parent company shall be ascertained and determined accordingly.