China Securities Investor Services Center on Behalf of ST Modern v. Guangzhou Ruifeng Group and Responsible Directors and Executives
Official materials on China Investor Network state that ST Modern's controlling shareholder non-operationally occupied about RMB 240 million of listed-company funds over an extended period, after which the investor-protection institution sued on the company's behalf when repeated internal demands failed. The Guangzhou court ordered repayment of the occupied funds and interest and imposed layered joint and several liability on the former chairman, former general manager, and former finance director according to their levels of fault; the Guangdong Higher People's Court affirmed, making the case a significant precedent for civil recovery in listed-company fund-occupation disputes.
Holding
Official materials on China Investor Network state that ST Modern's controlling shareholder non-operationally occupied about RMB 240 million of listed-company funds over an extended period, after which the investor-protection institution sued on the company's behalf when repeated internal demands failed. The Guangzhou court ordered repayment of the occupied funds and interest and imposed layered joint and several liability on the former chairman, former general manager, and former finance director according to their levels of fault; the Guangdong Higher People's Court affirmed, making the case a significant precedent for civil recovery in listed-company fund-occupation disputes.