Background
According to YunTing Law Firm’s report of 7 May 2022, more than one billion shares in a listed company held by a major corporate group were judicially frozen in a commercial dispute. The shares were worth several billion renminbi. The freeze affected a major planned transaction and the client’s liquidity arrangements.
Team’s work
Li Shu participated as the lead lawyer. The team examined the value of the shares and scope of the freeze, prepared objections, evidence and submissions, and communicated with the preservation and enforcement court, other relevant courts and the share registration institution to seek review of the scope and necessity of the measures.
Result
The source reports that the shares were released from the freeze within two weeks and that the client subsequently completed its major transaction. This was the lifting of an asset-preservation measure; it does not establish a final victory in the underlying commercial dispute.
Practical observations
The matter illustrates the importance of accurately assessing asset values, selecting appropriate procedures, presenting evidence promptly and coordinating the preservation and enforcement process. The appropriateness of any particular measure depends on the claims, assets and applicable procedure in the individual case.