On May 11, 2021, the first instance hearing was held for a corporate interest damage liability dispute case handled by our firm. Our lawyers represented the plaintiff and appeared in court.

The defendants in the case were the plaintiff’s successive directors, general manager, and legal representative. During their tenure, the defendants commissioned two design firms for the same project, resulting in duplicate designs. They replaced the design firm without justifiable reason while the contract was being properly performed, causing the plaintiff to pay duplicate design fees for the same project. Additionally, the plaintiff was ordered to pay additional taxes, arbitration fees, and legal fees due to unpaid design fees.

We argue that "having money does not mean one can act recklessly," especially since "the company’s money is not their own."

The Company Law stipulates that directors and senior management owe a duty of care to the company. This requires them to handle company affairs with the same diligence, prudence, and intent to maximize the company’s interests as they would their own.

The defendants, as the plaintiff’s then directors, senior management, and legal representative, failed to fulfill their duties as "conscientious managers." They disregarded the company’s economic interests, allowed the waste of company resources, and should bear corresponding legal liability for breaching their duty of care.