On May 25, 2021, the second instance hearing was held at the Lishui Intermediate People’s Court for 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.

We argued that the new evidence submitted during the second instance sufficiently demonstrated that the company’s supervisor and executive director had explicitly refused to file a lawsuit against the company’s senior management, 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.