Monthly Archives: November 2016

Legal Update on The Specific Internet Advertisement Regulation in China ————Part 1: Overview and Summary

Following the new and most restrictive Chinese Advertisement Law taking effect on 1 September, 2015, which has reshaped the lives of so many brand legal lawyers, the State Administration for Industry and Commerce (“SAIC”) released the Interim Measures for Internet Advertising Supervision and Management (“IAD Measures ”) on July 8, 2016 with a view to regulating the specific area filled with countless issues: the internet advertisement. This time, after September 1, 2016 when the IAD Measures is taken effect, the lives of so many e-commerce industries which ultimately feed on advertisement will also be changed again

Chinese “Deep Rock” Subordination of Shareholder Loan?

On 31 March, the PRC Supreme People’s Court (“SPC”) published 4 precedent cases with binding effect. Among others, the enforcement objection case between Shagang and Kaitian was considered the first PRC case borrowing the “Deep Rock Doctrine”, a U.S. equitable subordination doctrine well established in the Taylor v Standard Gas & Electric Company (1939) case holding that claims, as creditors, upon an insolvent subsidiary company by controlling shareholders or other insiders (such as managers or directors) shall be deemed to receive the same treatment as shares of stock owned by the said insider, and thus shall be subordinated to the claims of all other creditors.