After the new company law came into effect, minority shareholders withdrew from the company

After the new company law came into effect, minority shareholders withdrew from the company

After the new company law comes into effect on July 1, 2024, a new system has been added, let's take a look at it first.

Company Law of the People's Republic of China (2023 Revision).

Article 89 "If the controlling shareholder of the company abuses the rights of shareholders and seriously damages the interests of the company or other shareholders, the other shareholders have the right to request the company to acquire its equity in accordance with a reasonable rate." ”

Let's take a look at some of the meanings here.

Level 1: Shareholders have the right to request a buyback from the company.

The second layer: repurchase ** reasonable.

The third layer: the controlling shareholder abuses the shareholder rights.

Therefore, after the new company law comes into effect, as long as the controlling shareholder abuses the shareholder rights, the minority shareholder can sue the company to repurchase the company under Article 89. There are a few things powerful about this clause.

First: there is no threshold for prosecution, as long as there is a hand.

Second, minority shareholders can apply for property preservation when suing.

Third, minority shareholders can apply for documentary evidence to make an order requiring the company to provide financial documents for auditing.

As we all know, once the company takes out the financial vouchers, few can stand up to the audit.

Some people say, what if the company doesn't cooperate?

Very simple. When a shareholder sues, as long as he claims a higher repurchase** and applies for documentary evidence to file an order, if the company does not cooperate, the court can directly award the higher repurchase**.