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Guiding Case No. 8: Lin Fangqing v. Kailai Industrial Co., Ltd. of Changshu City and Dai Xiaoming (company dissolution dispute)

Lin Fangqing v. Kailai Industrial Co., Ltd. of Changshu City and Dai Xiaoming
(company dissolution dispute)
(Issued on April 9, 2012 as adopted by the Judicial Committee of the Supreme People's Court)
Guiding Case No. 8
civil; company dissolution; serious difficulty in business operations and management; company deadlock
's Key Points
Pursuant to Article 183 of the Company Law, “serious difficulty in business operations and management of a company” is one of the conditions for a shareholder to institute an action for company dissolution. To determine whether the business operations and management of a company are in serious difficulty, the operating status of the company's organizational structure should be analyzed comprehensively. Where a company is making profits but there is a long-term mechanism failure of its shareholders' meeting, there are serious obstacles in its internal management, and the company has entered a state of deadlock, the company may be determined to have serious difficulty in business operations and management. If other conditions as prescribed in the Company Law and relevant judicial interpretations are satisfied, the people's court may make a  to legally dissolve the company.


(最高人民法院审判委员会讨论通过 2012年4月9日发布)

民事 公司解散 经营管理严重困难 公司僵局

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