Reference Case: Camel Group Co., Ltd.'s Application for Compulsory Liquidation of Hubei Camel Haixia New-Type Battery Co., Ltd.
When a company's business term has expired and shareholders are deadlocked over continuation versus liquidation, a court need not move immediately to terminal liquidation. If the company still has going-concern value and governance can be restored through clarification, hearings, charter amendments, and shareholder exit arrangements while protecting creditors, shareholders, and employees, the court may facilitate a continuation-oriented settlement in lieu of compulsory liquidation.
Holding
When a company's business term has expired and shareholders are deadlocked over continuation versus liquidation, a court need not move immediately to terminal liquidation. If the company still has going-concern value and governance can be restored through clarification, hearings, charter amendments, and shareholder exit arrangements while protecting creditors, shareholders, and employees, the court may facilitate a continuation-oriented settlement in lieu of compulsory liquidation.