Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of People's Republic of China (PRC) (IV) Article 21 Where a shareholder of a limited liability company transfers his equity to a person other than the shareholder, fails to negotiate with other shareholders about the transfer of his equity, or damages the preemptive right of other shareholders by means of fraud or malicious collusion, and other shareholders advocate buying the transferred equity on the same terms, the people's court shall support it. However, other shareholders shall not claim within 30 days from the date of knowing or should know the same conditions for exercising the preemptive right, or more than one year from the date of registration of equity change. If other shareholders listed in the preceding paragraph only request to confirm the validity of the equity transfer contract and changes in equity, but do not advocate to buy the equity transferred under the same conditions, the people's court will not support them and request damages, except that other shareholders are unable to exercise the preemptive right for their own reasons. If the transferee of equity other than shareholders cannot achieve the purpose of the contract because shareholders exercise the preemptive right, they may request the transferring shareholders to bear corresponding civil liabilities according to law.