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Tag Archives: resolution of shareholder meeting

Several Conclusions from Governance Right Disputes among Shareholders

Posted on April 9, 2012 by You Yunting

A three-year lasting dispute between shareholders of a property management company (the “Company”) was finally settled in recent, with the infringing shareholder judged to compensate the Company. Commencing from 15th October 2008, the case was adjudicated on 20th January 2012 at last after the arbitration of 3 years and 3 months, and with its complex plotting, the dispute could be a lesson to the shareholders of Chine enterprises.

In 2008, after years of operation, the Company has come into a stable and fast development, and its major shareholder Zhang, also the legal representative and chief director of the Company planned to introduce the strategic investment to expand the scale of the company. In June of that year, Shi, who once studied abroad and got in touch with Zhang on the beginning of the same year, purchased 23% of the company share on the approval by other shareholders, and took the post of deputy general manager in the company afterwards, which led to the separation of the Company power that Zhang took charge of the clients exploration and relationship while Shi was responsible for inner management. On 29th August, the new Legal Director appointed by Shi adjusted the Articles of the Association, and by the new regulations the supervisor has the right to dismiss the legal representative and director of the Company. And that lay the powder hose to the future conflict in the Company.

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Posted in Corporation, Non-litigation, Operation | Tagged actual business place, actual controller, actuall controlling company, apply for liquidation of company, article 54 of corporate law, articles of association, chairman of director, China corporate law lawyer, civil lawsuit for interest damage by company, company account, company dismiss, company governance structure, company manager in good faith, company seal, controlling shareholder, decide to implement company operation plan, defect of shareholder meeting resolution, director, due diligence investigation, free clause boundry, infringing shareholder compensation, investment program, joint infringer, jurisdiction by domicile court, law firm, legal opinion, legal representative, police report for seal losing, recall power, resolution of shareholder meeting, revoke shareholder meeting resolution, senior management, shareholder deadlock, Shareholder dispute, strategic investor, supervisor, temporary shareholder meeting
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