On January 14, 2021, in a case handled by our firm regarding the damage to the interests of other partners caused by the "underselling" of equity, after our appeal, the second - instance court ruled to remand the case for retrial.

The core disputed issue in this case is as follows: The managing partner transferred the equity held by the partnership enterprise through the partner meeting procedure, but the price was significantly too low. Does it damage the interests of other partners? Can compensation be claimed?

The first - instance court held that the equity transfer procedure was legal and did not infringe on the interests of the plaintiff, so it rejected the plaintiff's lawsuit claims.

We believe that partners with a majority vote shall not abuse the "majority vote" to damage the interests of other partners. Even if the resolution procedure of the partnership enterprise involved in the case was legal, the two partners did not accurately evaluate and reasonably price the value of the equity held by the two partnership enterprises, which violated the principle of fair trade and they should compensate the plaintiff for the losses.

We thus filed an appeal. The second - instance court held that there were circumstances of unclear factual determination in this case, so it ruled to revoke the first - instance judgment and remand the case for retrial.