On June 7, 2021, the second instance court overturned the original ruling and instructed the first instance court to retry a case in which our firm represented a minority shareholder suing the company’s manager, financial officer, and supervisor for damaging the company’s interests.

One of the key issues in dispute was whether the minority shareholder had met the preconditions for filing a shareholder derivative lawsuit.

The first instance court ruled that the shareholder had not "exhausted internal remedies" and had not fulfilled the statutory preconditions, thus dismissing the case.

We argued that the existing evidence sufficiently demonstrated that the company’s supervisor and executive director had explicitly refused to file a lawsuit against the company’s senior management and supervisor, making it impossible for the company’s relevant authorities to initiate legal action. Therefore, the minority shareholder’s filing of a derivative lawsuit met the statutory preconditions.

We appealed the decision, and the second instance court supported our appeal, ruling that the first instance court’s dismissal of the case was erroneous. The second instance court therefore overturned the original ruling and instructed the first instance court to retry the case.