Last week, the second online hearing was held for a corporate interest damage liability dispute case represented by our firm, arising from the breach of the duty of care by the company’s then directors and senior management.

Our lawyers, representing the company as the plaintiff, submitted supplementary evidence to the court and cross-examined the additional evidence provided by the defendants. The lawyers from both sides engaged in a court debate focusing on the key issues in dispute.

We argued that directors and senior management are legally accountable to the company, not to any single majority shareholder. They must fulfill their duties with due diligence, make independent and prudent decisions regarding the company’s management and operations, and act as conscientious managers. They cannot arbitrarily shift responsibility or neglect their duties by blaming the shareholders.

If directors and senior management could easily shift responsibility to shareholders, the provisions of the Company Law regarding their duty of care would be rendered meaningless. This would also contradict the modern corporate governance principle of separating ownership and management.

The case is still under review, and the court will issue a ruling at a later date.