The Validity of Amendment to Share Assign Contract is not Necessarily Subject to Approval

The latest released Judicial Application Guideline by the Supreme Court of China provides, under Article 13, that the validity and effectiveness of the Amendment to Share Assignment Contract of a foreign invested company is not necessarily subject to the approval of foreign investment authority if the main contact of share is approved and the amendment does not make essential and material change. The material and essential change refers to includes the adjustment of equity capital, classification of business or form of business, business range, term of operation, commitment of holder’s pay-up of equity capital in terms of amount and in terms of form of assets, merge or division of the company and further share assignment.