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This question requires candidates to deal with the legal issues relating to derivative litigation under the Company Law of China.
(a) Ms E was entitled to bring a lawsuit against Mr A. The legal basis for this conclusion is Articles 21, 150 and 152 of the Company Law. The controlling shareholders, actual controllers or directors of a company shall not, by taking advantage of their affiliate relationship, damage the interests of the company. Where any of the above-mentioned persons violates laws or articles of association of a company and causes damages to a company, such person shall be liable for the damages. If such a situation occurs, any shareholder may directly bring a lawsuit against the director, subject to the conditions as prescribed by the Company Law.
(b) In accordance with Article 152 of the Company Law, the following conditions shall be satisfied:
(i) Ms E requests the supervisory board in writing to bring a lawsuit against the director who causes the damage;
(ii) the supervisory board, upon its receipt of Ms E’s request, fails to file a lawsuit within 30 days upon the receipt of such request;
(iii) Ms E brings a lawsuit against the Mr A for the interests of the company, in her own name.
(c) Assuming Ms E was granted a favourable judgement by the court, the beneficiary should be Tenda Co Ltd. Although Ms E brought the lawsuit in her own name, the legal action was for the interests of the company. Therefore, the result of such a legal action should be attributed to the company.

A.
(a)
B.
(b)
C.
(c)
D.


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ThisquestionrequirescandidatestodealwiththelegalissuesrelatingtoderivativelitigationundertheCompanyLawofChina.(a)MsEwasentitledtobringalawsuitaga......

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