Typical Case: Shanghai Lan Trading Co., Ltd. v. Jiang et al.
A senior manager who causes the company to transact with a company held or controlled by a close relative, without disclosure to and approval from the shareholders, engages in company-law self-dealing. The company may recover the portion of the transaction gain exceeding fair market value to restore the company's interests.
Holding
A senior manager who causes the company to transact with a company held or controlled by a close relative, without disclosure to and approval from the shareholders, engages in company-law self-dealing. The company may recover the portion of the transaction gain exceeding fair market value to restore the company's interests.
Issues
duty of loyalty of senior managementself-dealingrelated-party transactions through companies controlled by close relatives