Gazette Case: Jilin Huiguan Investment Co., Ltd., with Dongzheng Rongcheng Capital Management Co., Ltd. as Third Party, v. Changchun Northeast Asia Logistics Co., Ltd., with Dong Zhanqin as Third Party
A company's continuing profitability is not decisive in deciding judicial dissolution. Where a substantial shareholder has long been unable to exercise basic rights of participation, oversight, and governance benefit-sharing, and repeated attempts at valuation exit, share acquisition, or negotiated management arrangements fail to restore normal governance, a court may find severe management difficulty and grant dissolution.
Holding
A company's continuing profitability is not decisive in deciding judicial dissolution. Where a substantial shareholder has long been unable to exercise basic rights of participation, oversight, and governance benefit-sharing, and repeated attempts at valuation exit, share acquisition, or negotiated management arrangements fail to restore normal governance, a court may find severe management difficulty and grant dissolution.