How to Deal with Shareholders' Damage to the Company's Interests

Legal analysis: if a shareholder damages the company's interests, he may be required to bear the liability for damages, or he may convene a shareholders' meeting to decide the disposal method according to law, or he may sue the shareholder for damages to the court, or he may be required to bear the liability for damages, or he may convene a shareholders' meeting to decide the disposal method according to law, or he may bring a lawsuit to the court.

Legal basis: People's Republic of China (PRC) Company Law.

Article 4 Shareholders of a company shall enjoy the right to return on assets, participate in major decisions and choose managers according to law.

Article 20 If the shareholders of a company abuse their rights and cause losses to the company or other shareholders, they shall be liable for compensation according to law. Shareholders of a company who abuse the independent status of a company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of creditors of the company shall be jointly and severally liable for the debts of the company.