Ai Kang Capital Inc. v. Xing
Ai Kang Capital Inc.
Law Firm / Organization
Fasken Martineau DuMoulin LLP
Dong Wang aka Wang Dong
Huai Xiang Xing
Law Firm / Organization
Pun & Jiang Law
Lawyer(s)

Sampson Pun

Bin Chen
Law Firm / Organization
Pun & Jiang Law
Lawyer(s)

Sampson Pun

Aikang GP (006) Management Ltd.
Law Firm / Organization
Pun & Jiang Law
Lawyer(s)

Sampson Pun

Background: Huai Xiang Xing and Bin Chen, minority shareholders of Aikang GP (006) Management Ltd., alleged that the company's affairs were conducted oppressively by Ai Kang Capital Inc. and its director, Dr. Dong Wang. Xing and Chen claimed their approval rights under the shareholders' agreement were ignored, particularly regarding unauthorized payments and financial mismanagement.

Legal Issues: The central issue was whether Aikang GP's operations were conducted in an oppressive manner, violating the rights of the minority shareholders. The court also addressed whether the case should proceed as a full trial or be resolved summarily.

Court Proceedings: The chambers judge initially denied the request to convert the petition into a trial, deciding that the oppression claims could be determined summarily. However, after an appeal, the Court of Appeal for British Columbia upheld the decision not to convert the case but acknowledged procedural flexibility under new guidelines from Cepuran v. Carlton.

Outcome: The Court of Appeal dismissed the appeal, allowing the case to return to the Supreme Court of British Columbia for further proceedings. The trial court was left to determine the appropriate procedures to resolve the dispute.

Costs: Each party was ordered to bear its own costs, as neither side fully prevailed in the appeal?.

Court of Appeals for British Columbia
CA47823; CA47824
Corporate & commercial law