The lawsuit in which our firm represented shareholders suing the company's manager, chief financial officer, and supervisor for liability for damage to the company's interests had its first hearing last Friday.

One of the disputed issues in this case is: How to determine the amount of compensation that the manager should pay for reimbursing expenses unrelated to the company's operations from the company?

We believe that the loss caused by the manager to the company, that is, the amount of compensation he should pay, can be accurately determined through judicial expertise and auditing.

In judicial practice, most courts also adopt this method for judgment. Generally, audit institutions will classify unreasonable expenses into the following categories:

1. Expenses unrelated to business operations, such as reimbursing daily living expenses like food and clothing that have nothing to do with the company's business in the name of the company or in one's own name.

2. Expenses whose relation to business operations cannot be determined, such as travel expenses reimbursed in the name of the company or in one's own name that have nothing to do with the locations of the company's customer and supplier rosters, and meal expenses without any signs of entertaining customers or employee dining together.

3.Expenses whose actual occurrence cannot be confirmed, such as expense payments without original documents like invoices and contracts.

The above three types of expenses all belong to the losses suffered by the company's interests. On the premise that the manager has no evidence to deny the objectivity of the judicial expertise opinion, he should bear the liability for compensation for the losses caused by his violation of the duty of loyalty and diligence to the company.

Therefore, in this case, we have submitted an application for judicial expertise to the court.