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Shareholder Liability Dispute Over Damages to Company Interests in a Xiamen Technology Company

Case Summary

Plaintiff: Xiamen [Name] Technology Co., Ltd. Defendant: Wang, the company's controlling shareholder and legal representative, holding 70% of shares. Between 2023 and 2024, Wang abused his position as legal representative and actual controller to sign multiple sales contracts with another company he controlled without approval from the shareholders' meeting or board of directors. He purchased raw materials from that company at prices significantly above market rate and sold products at prices significantly below market rate. Through these related-party transactions, Wang transferred the plaintiff company's profits and assets to his own controlled company, causing a total economic loss of 320 ten thousand yuan to the plaintiff company. After discovering this, the company's supervisory board repeatedly demanded compensation from Wang, but he refused. The company has now filed a lawsuit seeking compensation for economic losses of 320 ten thousand yuan plus interest.

Key Dispute

1.Did defendant Wang's related-party transactions violate legal provisions and the company's articles of association?
2.Did Wang's related-party transactions cause financial losses to the company?
3.Should Wang be held liable for compensating the company's losses?

Case Strategy

1.Fixed company business registration information, shareholder identification documents for Wang, related-party transaction contracts, payment vouchers, invoices, evidence of product/raw material market prices, corporate financial audit reports, supervisory board notices, and communication records between both parties as core evidence.
2.Provide evidence that Wang, as the company's controlling shareholder and legal representative, entered into a related-party transaction with a company he controls without approval from the shareholders' meeting or board of directors. The transaction price was clearly deviated from reasonable market value, violating the Company Law provisions prohibiting controlling shareholders, directors, supervisors, and senior executives from using their related-party relationships to harm the company's interests.
3.The evidence proves that Wang's related-party transactions directly caused the company a financial loss of 320 million yuan, establishing a direct causal relationship between the two.
4.Calculate the amount and interest Wang must compensate based on the company's actual losses.

Processing Result

The court ruled that Defendant Wang must compensate Plaintiff Xiamen Certain Technology Co., Ltd. for economic losses of 320 ten thousand yuan, plus interest calculated on a principal of 320 ten thousand yuan at the Loan Prime Rate published by the National Interbank Funding Center from the date the loss occurred until the date of full payment. Defendant shall bear all litigation fees, audit fees, and preservation fees in this case.

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