Database Case: Shanghai Cold Storage Co. v. Shanghai Cold-Chain Logistics Co.
The employee-supervisor requirement, including both qualification and election procedure, is a mandatory validity rule under the Company Law. If the appointed person is not actually an employee and the democratic election process is defective, the company resolution on supervisory-board composition is invalid and the board must be reconstituted under law and the articles.
Holding
The employee-supervisor requirement, including both qualification and election procedure, is a mandatory validity rule under the Company Law. If the appointed person is not actually an employee and the democratic election process is defective, the company resolution on supervisory-board composition is invalid and the board must be reconstituted under law and the articles.
Issues
employee-supervisor qualificationdemocratic election proceduremandatory validity rule