case Mainland China English summary

Shangu Turbine Related-Party Transaction Duty Case

某甲公司诉高某某、程某公司关联交易损害公司利益纠纷案

A Supreme People's Court retrial treated undisclosed related-party procurement through directors' affiliated company as company-interest harm where the transaction structure caused benefits to flow out of the company.

Brief English Introduction

The decision emphasizes disclosure of related-party transactions, substantive review of commercial structure and price, and disgorgement or damages where an unnecessary affiliate layer extracts value.

Use It For

Use this with Company Law Articles 22, 182, 186, and 188, and with Interpretation V Article 1 on why formal procedure alone does not defeat a company-interest harm claim.

Teaching Notes

The case is a good antidote to treating related-party approval as a box-checking exercise. Ask students what evidence shows an actual transfer of value.