Database Case: Zhao Mou, Wang Mou et al. v. Beijing Company and Liu Mou et al.
Where no profit-distribution resolution exists, minority shareholders seeking direct judicial relief on an abstract profit-distribution claim must at least show actual distributable profits after losses, tax, and reserve requirements, and also show abuse by controlling shareholders that caused the company not to distribute profits. Without both conditions, the claim should fail.
Holding
Where no profit-distribution resolution exists, minority shareholders seeking direct judicial relief on an abstract profit-distribution claim must at least show actual distributable profits after losses, tax, and reserve requirements, and also show abuse by controlling shareholders that caused the company not to distribute profits. Without both conditions, the claim should fail.