Legal Effect of Unauthorized Transfer of Equity by One Spouse
Source:China Court Network
Author:Supreme People's Court
Release Time:2026-07-21
Article 9 of the Interpretation (II) stipulates that if one spouse transfers the equity of a limited liability company that is registered in their own name but funded by community property, and the other spouse requests confirmation of the transfer contract's invalidity on the grounds of lack of consent, the court shall not support it, unless there is evidence that the transferor and transferee maliciously colluded to harm the other spouse's lawful rights and interests. This provision balances transaction security with the protection of community property, balancing the interests of bona fide third parties and spouses.