Overview:
Qun Zhao and AQM Investment International Ltd. alleged oppression and unfairly prejudicial conduct in Ai Kang Capital Inc.’s (“AKC”) management. They sought remedies, including share purchases or corporate liquidation. Counterclaims by AKC and related parties, including Wang Dong, Aikang Yi Yuan Enterprises Ltd. (AKYE), and Chen Changzhan, alleged breaches of fiduciary duty and contract by Ms. Zhao.

Key Legal Issues and Court Rulings:

• Oppression Remedy: The plaintiffs alleged mismanagement and sought equitable remedies. The court allowed the matter to proceed, dismissing the defendants' efforts to limit claims at this stage.

• Document Disclosure: Plaintiffs argued the defendants failed to comply with document disclosure orders. While deficiencies were noted, the court ruled they did not justify striking pleadings and emphasized proportionality and fairness. Affidavits verifying disclosure were ordered.

• Waiver of Privilege: Plaintiffs claimed Dr. Wang waived solicitor-client privilege in affidavits referencing instructions to legal counsel. The court rejected this, finding no voluntary or implied waiver.

• Continuation of Discovery: Due to late disclosures by both parties, the court allowed a continuation of discovery for three hours each, with the scope adjusted to address new documents.

Costs and Awards:
The court deferred the determination of general costs until the trial’s conclusion. Special costs against AKC were previously ordered for noncompliance, reflecting their “cavalier” approach to document disclosure.