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