Enforcing Domestic PRC Arbitration Awards against Chinese Manufacturing Entities
Enforce domestic PRC arbitral awards against manufacturers by securing pre-award bank freezes via property preservation insurance and piercing corporate veils.
Fraudulent Conveyance Civil Code
Meaning
Statutory avoidance rights under Chinese civil law allow creditors to petition people’s courts to revoke property transfers made by debtors that intentionally undermine debt satisfaction. Provisions governing fraudulent conveyance civil code actions protect creditor claims when debtors dispose of assets at unrealistically low prices or give away corporate property without consideration. Legal challenges restore transferred assets to the primary execution pool.
Creditors initiate suit within statutory deadlines following discovery of improper asset disposition.
Revocation Right
Creditors hold statutory authority to cancel asset sales made to related parties when the transaction harms outstanding debt recovery. Application of fraudulent conveyance civil code rules invalidates collusive property transfers, returning ownership titles to the debtor entity for execution.
Evidentiary Requirement
Plaintiffs must prove the debtor possessed actual knowledge of financial insolvency when executing the contested transaction. Under fraudulent conveyance civil code standards, transactions conducted at prices below seventy percent of fair market value establish a presumption of improper transfer. Buyers who acquire assets in good faith for full market value remain protected against judicial revocation orders.
Statutory Limitation
Avoidance actions must commence within one year from the date the creditor knew or should have known of the grounds for revocation. The fraudulent conveyance civil code sets an absolute maximum cap of five years from the actual date of the transfer, after which creditor revocation rights expire completely.