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Immersive Court Hearing + Thematic Lecture:
[2025-10-11]

To further optimize the rule-of-law-based business environment, assist enterprises in preventing and resolving operational legal risks, and enhance their ability to comply with legal governance, the Commercial Division of the Hongkou District People's Court recently organized an immersive court hearing and case-based legal education event as part of the "Entrepreneurs Learning the Law" initiative. This event adopted an innovative dual-track model of "thematic lecture + court-hearing observation", creating a multi-dimensional rule of law education setting for invited entrepreneur representatives serving as "Rule-of-Law Business Environment Service Observers". Through the deep integration of judicial practice and theoretical instruction, the program supports enterprises in improving their capabilities for lawful and compliant governance.

In the first half of the event, Li Danying, Deputy Secretary of the Party Branch and Judge Assistant of the Commercial Division of the Hongkou District People's Court, delivered a lecture titled "Legal Overview and Key Points Analysis of Disputes Involving Damage to Corporate Interests". The lecture was closely aligned with the new Company Law and relevant judicial interpretations, establishing an integrated explanatory framework consisting of "legal provisions¡ªpractical analysis¡ªcase interpretation".

At the level of legal application, Li Danying systematically outlined the constituent elements of liability disputes involving damage to corporate interests, the standards for determining subject qualification, and the rules governing the allocation of the burden of proof. At the level of practical operation, she focused on dissecting the judicial reasoning behind typical cases, such as liability for damage arising from related-party transactions and shareholders' abuse of rights to the detriment of corporate interests, offering in-depth analysis of high-frequency points of contention encountered in judicial practice.

In response to enterprises' compliance management needs, she proposed concrete recommendations from the perspective of corporate governance, including improving the decision-making mechanisms of shareholders' meetings, establishing recusal systems for related-party transactions, and strengthening internal audit supervision, thereby providing professional guidance for enterprises in building risk-prevention and control systems.

In the second half of the event, an open court hearing of a liability dispute case involving damage to corporate interests, presided over by Zhang Hai, Deputy Chief Judge of the Commercial Division and Senior Judge of the Fourth Rank, provided entrepreneur representatives with an opportunity to observe judicial practice at close range. The hearing strictly followed statutory procedures, fully presenting litigation stages such as court investigation, evidence presentation and cross-examination, and court debate. The trial focused on the core disputed issues, including whether the defendant shareholder had abused shareholder rights and the causal relationship between the harmful consequences and the conduct, thereby fully demonstrated the judiciary's strict adherence to the principles of capital maintenance and shareholders' duty of good faith.

After the hearing concluded, Judge Zhang Hai conducted a combined "court hearing + legal interpretation" teaching session. Using the case as a sample, he provided an in-depth explanation of the legislative intent behind shareholders' duty of loyalty under the Company Law and analyzed the specific application of rules governing the admission of evidence in commercial disputes. In response to practical issues raised by entrepreneurs, such as "risk prevention and control in seal management" and "protection of the rights and interests of nominal shareholders", answers were provided with reference to the new Company Law and relevant judicial interpretations. Through a logical chain of "legal provisions ¨C case facts ¨C judicial conclusions", the session helped enterprises understand the regulatory orientation of judicial adjudication in maintaining market transaction order.

At the conclusion of the event, the "Rule-of-Law Business Environment Service Observers" expressed that, by participating in this program, they gained a profound understanding of the direct connection between corporate governance compliance and the sustainable development of an enterprise. They noted that the judiciary's forward-looking legal interpretations provided precise guidance for enterprise risk prevention and control, and they expressed their gratitude to the court for offering such a valuable learning opportunity.

Going forward, the Hongkou District People's Court will continue to deepen the "Rule-of-Law Business Environment Service Observer" mechanism and, through diversified initiatives such as "entrepreneurs entering the court" and "judges delivering lectures", establish regular communication channels between the judiciary and market participants. Relying on its adjudication functions and guided by the needs of enterprises, the court will continue to enhance the precision and effectiveness of judicial services, providing solid judicial safeguards for creating a stable, fair, and transparent rule-of-law-based business environment.

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