On February 5, 2021, the case of liability for damage to the company's interests represented by our firm was officially filed.

Our client is a minority shareholder of the company. The major shareholder "controls" the company and excludes the minority shareholders from participating in the company's operations.

Our firm represented the minority shareholders in suing the company to exercise shareholders' right to know, and the court supported all of our litigation claims. During the execution of the shareholder's right to know dispute, we found that the company's financial management was in chaos. There were a large number of expenditures without relevant vouchers. The major shareholder, as the manager, reimbursed a large number of expenses unrelated to business operations from the company, and the chief financial officer also approved the payment. At the same time, the company's supervisor has never fulfilled his/her duties to check the company's finances and supervise the actions of senior management in performing their duties.

We believe that senior management has a duty of loyalty and diligence to the company and shall not misappropriate the company's funds. If there are any acts that damage the company's interests, compensation shall be made. The company's manager, chief financial officer, and supervisor should jointly compensate for the company's losses.

Regarding whether shareholders can directly sue on behalf of the company, we believe that since both the company's manager and supervisor have damaged the company's interests, and the manager and supervisor, as shareholders of the company, have direct interests. At this time, there is no possibility for the relevant organs of the company to file a lawsuit on their own. Shareholders can directly sue on behalf of the company in accordance with the provisions of the "Summary of the National Court's Civil and Commercial Trial Work Conference".