Zaozhuang Investor-Protection Case: Wang inspection dispute

Reference Case: Wang Mou v. a Zaozhuang Hotel Co., Ltd.

After a minority shareholder submits a written demand to understand company operations and the reasons for prolonged non-distribution, a company that refuses access and gives no response may be ordered to provide the charter, meeting records, financial reports, accounting books, and accounting vouchers, with the court specifying a reasonable place and period for inspection to balance oversight and ordinary business operations.

Holding

After a minority shareholder submits a written demand to understand company operations and the reasons for prolonged non-distribution, a company that refuses access and gives no response may be ordered to provide the charter, meeting records, financial reports, accounting books, and accounting vouchers, with the court specifying a reasonable place and period for inspection to balance oversight and ordinary business operations.

Issues

information blockage by controlling shareholdersinspection of books and accounting vouchersinspection rights as a foundational shareholder right