Dispute over capital increase and share expansion among shareholders of a catering company in Fujian

Plaintiffs Chen and Lin, shareholders of Fujian-based catering management company [Company Name], hold 40% and 30% equity stakes respectively. Defendant Wang, who holds 30%, is the company's controlling shareholder and legal representative. In 2024 year, 5 month, without notifying plaintiffs Chen and Lin, Wang unilaterally convened a shareholders' meeting that approved a resolution to increase the company's registered capital from 1000 million yuan to 2000 million yuan. The additional 1000 million yuan in registered capital was fully subscribed by Wang alone; plaintiffs Chen and Lin received no subscription rights, were not notified to attend the shareholders' meeting, and were denied the opportunity to vote on the capital increase. Upon learning of this, plaintiffs argued that the resolution violated their statutory pre-emptive subscription rights as shareholders, contravening both the Company Law and the company's articles of association. They filed suit requesting the court to declare the shareholders' meeting resolution on capital increase null and void.

The court ruled that the resolution on capital increase and share expansion made at the shareholders' meeting held by Defendant Fujian [Company Name] Catering Management Co., Ltd. in 2024 year, 5 month is invalid; the defendant shall bear all litigation costs of this case.