Reference Case: Chu Mou v. a Certain Co., Ltd. (Profit Distribution)
Where the charter and prior distribution practice show profits are to be allocated according to capital contributions, and the company unjustifiably refuses to produce complete financial records to rebut the shareholder's claim, the court may draw an adverse inference, find that dividends were in fact declared, and order payment of the withheld dividends with interest.
Holding
Where the charter and prior distribution practice show profits are to be allocated according to capital contributions, and the company unjustifiably refuses to produce complete financial records to rebut the shareholder's claim, the court may draw an adverse inference, find that dividends were in fact declared, and order payment of the withheld dividends with interest.
Issues
dividend ratio fixed by the charteradverse inference from withholding financial recordspayment of shareholder dividends