Chapter 62: Determination: The Equity Transfer Agreement Is Invalid and Shall Be Revoked

At the appellant’s seat.

After organizing the materials, Su Bai spoke slowly:

“Presiding Judge, the materials submitted by our side concern Shen Guang, the major shareholder and legal representative of the current Tianlan Construction Co., Ltd.”

“According to the information.”

“The current major shareholder and legal representative of Tianlan Construction Co., Ltd., Shen Guang, is a judgment debtor subject to enforcement and has no executable property under his name, and Wu Qi transferred the equity to Shen Guang without obtaining any benefit.”

“According to Article 20 of the Company Law:”

“Shareholders and principal responsible persons of a company shall not abuse the independent legal person status of the company and the limited liability of shareholders to harm the interests of the company’s creditors.”

“At present Wu Qi transferred the equity and legal representative status to Shen Guang, which has seriously harmed the interests of our party.”

“I would like to ask the respondent Wu Qi, you have no relationship with Shen Guang.”

“He has no ability or property to pay the corresponding consideration for the equity you transferred.”

“Was your transfer of the company’s equity and legal representative status to Shen Guang not intended to evade debt liability?”

“Or alternatively, does Shen Guang have the ability to pay the consideration for the equity that you transferred?”

“May I ask whether the respondent has any proof to demonstrate that the other party paid the equity transfer consideration to you?”

“If you cannot demonstrate this, then our side has the right to consider that the respondent has the suspicion of maliciously transferring company debt, and our side applies for the revocation of Wu Qi’s equity transfer contract and legal representative transfer contract!”

Several questions were connected together.

They left Wu Qi completely at a loss and mentally confused.

You state that you did not maliciously evade debt, but did the other party pay the equity transfer consideration that should have been paid to you?

If not, then would that not clearly constitute non payment, and therefore amount to a gratuitous transfer of equity and malicious evasion of debt?

If payment was made, then as Shen Guang is a judgment debtor subject to enforcement, how could he have had the money to pay the equity transfer consideration?

This evidence needed to be provided by Wu Qi.

But the problem was that Wu Qi was completely unable to produce such evidence.

Shen Guang was a judgment debtor subject to enforcement and had no property under his name.

This was also the principal reason why Wu Qi originally selected Shen Guang to become the legal representative and to receive the transferred equity.

Based on the idea that even if he had money he would still not repay, he indeed intended to evade debt through this method.

Faced with Su Bai’s questioning, Wu Qi did not know how to respond for a time, and therefore turned his gaze toward Zhang Xiao.

At this moment, Zhang Xiao finally realized that he had indeed fallen into the trap from the beginning.

He had been led step by step by the opposing party.

Su Bai had brought him back to the issue of malicious evasion of debt.

On the judicial bench.

Yu Zhenyang struck the gavel.

Bang bang bang!

“Does the respondent have any objection?”

Facing the inquiry from Presiding Judge Yu Zhenyang, Zhang Xiao took a deep breath, and upon seeing the smile at the corner of Su Bai’s mouth, he understood that he had already fallen into the trap.

However, a position still had to be stated.

“Presiding Judge, our side raises an objection, our contract and equity transfer are lawful and valid, and there was no subjective intention to evade responsibility.”

Yu Zhenyang glanced at the evidentiary materials and raised his head to look toward Zhang Xiao at the respondent’s seat, and frowned slightly:

“With respect to the matter raised by the appellant, does your side have evidence proving that Shen Guang actually paid the equity transfer consideration to your side?”

Faced with Yu Zhenyang’s words, Zhang Xiao hesitated somewhat, but upon thinking that his side indeed had no way to prove this.

If he were to say something incorrectly.

That would not be Wu Qi’s problem, that would become his own problem.

Zhang Xiao shook his head: “Presiding Judge, our side has no evidence.”

“Very well!”

Bang bang bang!

Yu Zhenyang struck the gavel.

“The court now determines on the spot that the respondent has no evidence proving that Shen Guang paid the equity transfer consideration to your side, does your side have any objection to this determination?”

“Presiding Judge, our side has no objection.”

Bang bang bang!

Yu Zhenyang then looked toward Su Bai: “Does the appellant have anything further to supplement?”

“Presiding Judge, our side has nothing further to supplement.”

“Very well!”

Yu Zhenyang nodded slightly and struck the gavel again:

“In this case, Wu Qi, the former legal representative and shareholder of Tianlan Construction Co., Ltd., maliciously transferred company debt, and it is now determined that the transfer contracts of Wu Qi, Xie Yu, and Dong Qiang are invalid, and their equity transfer agreements are revoked.”

Bang bang!

“Do both parties have any objection to this determination?”

After hearing the determination, the corners of Su Bai’s mouth rose slightly.

At present, with such a determination, the recovery of property could be considered secure.

The revocation of the equity transfer agreement meant that the three of them must bear responsibility for Wan Henghao’s unpaid wages.

The principal entrusted objective of Wan Henghao had already been achieved.

After hearing this determination, Li Xuezhen fixed her gaze directly upon Wu Qi, and her small face was filled with excitement.

A fourth consecutive victory was already secure.

“Presiding Judge, our side has no objection.”

After speaking, Su Bai turned his gaze toward the respondent’s seat.

“Our side has no objection.”

Zhang Xiao spoke helplessly.

At the respondent’s seat, Wu Qi was sweating anxiously:

“Lawyer Zhang, what is the situation now, how was it determined that the transferred equity agreement should be revoked?”

“What should be done now!”

“I will not really be convicted, will I?”

Wu Qi, who had originally been pleased with himself, was truly panicked at this moment.

Zhang Xiao rubbed his temples, what else could be done now?

The determination had already been made.

There was no way to change the facts anymore, although the transferred equity agreement was lawful, Wu Qi indeed had the factual circumstances and subjective intention of maliciously evading debt.

Through step by step rhetorical guidance, the opposing party had caused their side to fall into the trap.

Moreover, the opposing party had raised a crucial point, namely that Shen Guang, the current shareholder and legal representative of Tianlan Construction Co., Ltd., was a judgment debtor subject to enforcement and had no ability to pay the equity transfer consideration to Wu Qi.

If the transfer was gratuitous, the presiding judge would certainly determine that it constituted malicious evasion of debt and would determine the revocation of the equity transfer.

And Wu Qi could not demonstrate by himself that he had not maliciously evaded debt.

Even if Wu Qi had secretly given Shen Guang a sum of money, since Shen Guang as a judgment debtor subject to enforcement had no property under his name.

The source of the funds would also be investigated, and would ultimately be traced back to Wu Qi and determined as malicious evasion of debt.

This obstacle could certainly not be overcome.

Facing Wu Qi’s inquiry, Zhang Xiao took a deep breath, and he himself had no confidence at all.

“Let us proceed step by step, the specific result will still depend on the subsequent defense.”

After hearing these words, Wu Qi appeared somewhat nervous.

The implicit meaning of proceeding step by step was that there was currently no confidence.

“Then regarding the subsequent defense, Lawyer Zhang, do you have confidence?”

“Is it not the case that you have no executable property under your name, you do not have the ability to execute payment of wages, and this is not malicious evasion of payment of labor remuneration, let us continue with the hearing.”

After hearing this, Wu Qi nodded slightly and finally felt relieved.

He subconsciously raised his head and looked toward Wan Henghao.

He saw that Li Xuezhen was staring at him without blinking, and her gaze made him feel somewhat strange.

However, he could not say exactly what was strange about it.

What was this young woman doing?