Translator: Nyoi-Bo Studio Editor: Nyoi-Bo Studio
It appears the legal representative the sent was this young girl who hasn’t even look like she’s graduated university yet. Zhao Da sighed in relief and looked at his own professional and mature Lawyer Jin, then back at the young girl. She looks even younger than my own granddaughter, he thought. what good can she do anyway? She must’ve used some kind of connection to get a post inside the military. He sat back down on the long couch by the window and crossed his legs, then took out a cigarette to smoke.
Wen Shouyi immediately stopped him. “Mr. Zhao, this is a non-smoking zone. Please go outside the building if you wish to smoke.”
“Oh, is that so? I won’t smoke then.” Zhao Da smirked as he crumpled up the cigarette and threw it into the garbage. He glanced at Lawyer Jin and froze: the man seemed wary. Lawyer Jin was very vigilant as he sat across from Gu Nianzhi at the conference table.
Zhang Baochen was next to Lawyer Jin and surveyed Gu Nianzhi. He assumed Huo Shaoheng must also be present if the girl was here. He recognized the man accompanying Gu Nianzhi as Zhao Liangze, one of Huo Shaoheng’s personal secretaries. What is he doing here? Could Huo Shaoheng have something to do with what is going on with Dacheng Industries? Zhang Baochen’s imagination went wild while he overheard Lawyer Jin profuse eloquently: “Miss Gu, are you here to ask my client to sign this Investigation of Properties Request as the military’s legal representative, correct?” Lawyer Jin waved the photocopy of the document that had been faxed over.
Gu Nianzhi nodded. “Of course. He refused to sign it yesterday, so I had to personally come in today.” She shifted her gaze to Zhang Baochen. “Mr. Zhang, I’ll ask you again, are you going to sign this Investigation of Assets Request or not?” Gu Nianzhi possessed a peculiar air of dominance when she was grim faced; anyone m would be frightened enough to do anything she asked.
Zhang Baochen knew she was just an orphan girl and was putting up a bluff with Huo Shaoheng’s protection, however, his heart hammered when her pitch black eyes stared at him. His back was slick with nervous sweat. Zhang Baochen stammered to Lawyer Jin, forcing out the words, “L-Lawyer Jin said—”
“What did Lawyer Jin say?” Gu Nianzhi briskly cut Zhang Baochen off to exert more psychological stress. She had been professionally trained and was employing a few of those tactics now. However, Zhang Baochen was more pathetic than Gu Nianzhi had originally anticipated. He had no clue about anything: intimidating him didn’t allow her to glean any useful information. He was even so anxious that he kept running to the bathroom. In her heart, Gu Nianzhi cursed Zhang Baochen for being the most pathetic person out of all pathetic people, but maintained a smile for the sake of appearance. She slid the document over to him. “Please sign this if you can’t think of a reason not to.” She changed her tone to be melodious and sweet, sounding just like a midnight chat show host compelling people to expose their innermost secrets when their hearts were the most vulnerable.
Zhang Baochen nearly took the pen in his confusion.
Lawyer Jin clamped down on his hand and nudged the document back to Gu Nianzhi while asking with surprise, “Miss Gu, you can’t possibly think that my client’s personal assets have anything to do with what is going on with Dacheng Industries?”
“Why else did you you think I made a trip for?” Gu Nianzhi cocked her head with a smile and secretly gloated over the breakthrough. When she appeared the most nonchalant was the time she was actually gearing up for battle. Frightening Zhang Boachen was only the beginning.
“Then allow me to repeat myself: according to our nation’s business laws, Dacheng Industries Ltd. is only a limited liability company. If there are any problems with its operations and it becomes insolvent thus requiring liquidation, then the company itself will be liquidated. This does not include my client’s personal assets.” Lawyer Jin pointed to the Investigation of Assets Request. “You cannot freeze my client’s personal bank accounts or confiscate his properties. These are all my client’s personal assets, which have nothing to do with Dacheng Industries.” In other words, Zhang Baochen would only lose his 5% shares in Dacheng Industries even if it were to go bankrupt. He hadn’t even invested a penny into the company, so the shares were gifted to him. If Dacheng Industries made a profit, he would receive dividends. If the company had a loss, he would not receive the dividends, but he also didn’t have to take any responsibility.
“Indeed, Lawyer Jin is correct.” Zhao Da’s lawyer chimed in as well as he scoffed at Gu Nianzhi. “This is the most basic company law. Do you, Miss Gu, not understand it? Have you even graduated from university yet? Perhaps you should go back to school and study company law again?”
“Yes, you are both correct. I agree with what you are saying about company law.” Gu Nianzhi clapped her hands in approval.
Zhao Da’s lawyer had never crossed paths with Gu Nianzhi and felt even more smug when he saw that his choice words had the young female lawyer representing the military by the nose. She appeared weak and defenseless so he respected her even less now. However, Lawyer Jin had suffered in Gu Nianzhi’s hands before, so he was more cautious. He could sense the reservation in Gu Nianzhi’s words and mulled over it before responding, “Am I wrong? Or is the military abusing its power and seizing personal property illegally?”
“Oh? I haven’t seen Lawyer Jin for just a few days and you’ve learned how to make false accusations now!” Gu Nianzhi supported herself on her hands and straightened her back. “This won’t do. We are lawyers and must use legal jargon and logic when speaking. We can’t blabber nonsense as though we are people who don’t understand the law. There must be evidence backing every word a lawyer says.”
“Am I wrong?” Lawyer Jin repeated. He was still bitter about losing to Gu Nianzhi the last time and slapped the table as he rose from his seat to throw the materials he had prepared at Gu Nianzhi and said, “Look for yourself! My client only holds a 5% share and has nothing to do with the executive level of Dacheng Industries! He’s only a shareholder! And a minor one at that! He has no liability for anything outside of his shares in Dacheng Industries! Am I making myself clear?”
Gu Nianzhi shifted in her seat to avoid Lawyer Jin’s shouting before standing up as well. “Are you done now?”
“Yes I’m done. Do tell me what legal grounds you have for my client to bear any debt liability aside from his minority shares. Remember, the reasons have to be legal and legitimate! Don’t think you can do whatever you want just because you have the support of the military. You better believe that I’m going to report you to the media!” Lawyer Jin thoroughly finished professing his reasons and finally sat down. He hastily took a sip of water; his mouth was getting too dry.
“Good, now it’s my turn to speak.” Gu Nianzhi also took out her prepared materials and threw it on the table.
“Lawyer Jin was certainly correct. For a limited liability company, the shareholders do not have to bear any liabilities outside of their own shares. If the company shuts downs and liquidates, shareholders will only lose all their own shares at maximum and not suffer any other losses.”
“What else do we have to discuss then? You can all leave now.” Lawyer Jin laughed. “You’re just repeating my words, but still have the audacity to ask my client to sign that request?”
“Of course,” Gu Nianzhi replied frostily, “Lawyer Jin, why are you so anxious? Can’t you wait for me to finish speaking?”
“You still have something else to say? If you’re just repeating what I said, don’t waste anymore of my time.” Lawyer Jin was getting impatient. “This is the month of the Lunar New Year and we are all very busy.”
Gu Nianzhi raised her brows, her voice even colder. “If you keep talking nonsense, I can report you to the Bar Association for lacking in professional ethics.”
Lawyer Jin finally quieted down, but his face was smug. Gu Nianzhi wouldn’t defeat him this time.
Gu Nianzhi scanned all the faces in the conference room and looked at the silent Zhao Liangze. She smiled reassuringly at him and took out an earmarked report from her materials, then proceeded with showering Lawyer Jin and Zhao Da’s lawyer with the evidence. “Dacheng Industries LLC.’s full name is Dacheng Industries Limited Liability Company. According to company laws, it is a limited liability company, LLC. According to the definition of LLC under company laws, it is stipulated that the number of shareholders in such companies shall not exceed 50 people nor fund externally. The shareholders shall bear limited liability within the limits of capital contribution. So if the company has problems under normal circumstances, the shareholders’ risk is only limited to the capital invested.”
Lawyer Jin crossed his arms and rolled his eyes.
“But…” Gu Nianzhi swiftly changed the topic as she glanced at Lawyer Jin.
He froze; he hated that phrase, “but” more than anything! Sh*t! This is so annoying! Why doesn’t she go to h*ll!
Gu Nianzhi paused then watched the faces of the two other lawyers fall before smiling, “Don’t forget, the company law also has a legal personality denial system, which is commonly known as ‘unmasking the company.’ In short, the shareholders cannot hide under the name of the company and do as they please. If the shareholders rule that the limited liability company has engaged in illegal activities and have the evidence surface from investigation, the shareholders are not exempt from liability. In order words, when shareholders use an LLC to engage in illegal acts, the shareholders not only have to assume responsibility for their own shares, but must also repay using their personal assets!” This regulation was known as “piercing the corporate veil.”
Lawyer Jin’s head started buzzing and his face grew ruddy as he howled in his mind, sh*t! How could he have forgotten this regulation! How could he possibly win the case now?!
