Brief English Introduction
The case is a staple comparator for the undercapitalization problem: thin capital and enterprise fragmentation are troubling, but the majority required more than the lawful use of multiple corporations and minimum insurance.
Use It For
Use this against Chinese debates over “significant undercapitalization” to ask when capital weakness becomes abuse of limited liability.
Teaching Notes
The dissent gives students a creditor-protection argument, while the majority makes them confront the boundary between corporate-law doctrine and legislative insurance policy.