Lin Cheng'en v. Li Jiangshan and Others: Alleged Misconduct Causing Company Loss
The court stated that liability for board members’ duty breaches cannot be inferred in the abstract. As a baseline, claimants must show actual company loss and corresponding improper benefit. Even in cross-border (including HK-linked) contexts, the Court applied the duty framework of company law consistently.
Holding
The court stated that liability for board members’ duty breaches cannot be inferred in the abstract. As a baseline, claimants must show actual company loss and corresponding improper benefit. Even in cross-border (including HK-linked) contexts, the Court applied the duty framework of company law consistently.
Issues
directors' duty of loyaltyrelated-party dealings and business opportunitiesproof of loss in cross-border damage claimscross-border application in board-member liability