Typical Case: German A International Freight Forwarding Co., Ltd. v. Beijing A International Freight Forwarding Co., Ltd.
Whether a company's operation and management have entered a state of serious difficulty should be judged primarily by whether the corporate organs have suffered a prolonged breakdown creating irresolvable internal obstacles. Where a Sino-foreign joint venture's articles mean that any disagreement blocks valid board action, the board cannot meet for a long period, and no other remedy can break the deadlock, a court may order judicial dissolution.
Holding
Whether a company's operation and management have entered a state of serious difficulty should be judged primarily by whether the corporate organs have suffered a prolonged breakdown creating irresolvable internal obstacles. Where a Sino-foreign joint venture's articles mean that any disagreement blocks valid board action, the board cannot meet for a long period, and no other remedy can break the deadlock, a court may order judicial dissolution.