Gazette Case: Shareholder Expulsion

Gazette Case: Liu Meifang v. Changzhou Kairui Chemical Technology Co., Ltd. et al.

A limited liability company may expel a shareholder by resolution if that shareholder still fails to cure full non-contribution or full capital withdrawal after demand, but the resolution is invalid where the voting shareholders themselves also engaged in sham contribution or total withdrawal and therefore lack a legitimate basis to wield expulsion power.

Holding

A limited liability company may expel a shareholder by resolution if that shareholder still fails to cure full non-contribution or full capital withdrawal after demand, but the resolution is invalid where the voting shareholders themselves also engaged in sham contribution or total withdrawal and therefore lack a legitimate basis to wield expulsion power.

Issues

shareholder expulsioncapital withdrawalvalidity of expulsion resolution