Gazette Case: Gansu Juli Door Industry Co., Ltd. v. Qingyang Taiyi Heating Co., Ltd. and Li Xinjun
Even absent a shareholder resolution specifying a distribution plan, a court may order profit distribution where the company has distributable profits and controlling shareholders have diverted, concealed, or appropriated them to the detriment of minority shareholders.
Holding
Even absent a shareholder resolution specifying a distribution plan, a court may order profit distribution where the company has distributable profits and controlling shareholders have diverted, concealed, or appropriated them to the detriment of minority shareholders.
Issues
profit distribution without a resolutioncourt-ordered profit distributioncontrolling-shareholder diversion of profits