Logical Layering and Criteria Reconstruction for the Determination of Usurpation of Corporate Opportunities
Research Article
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Logical Layering and Criteria Reconstruction for the Determination of Usurpation of Corporate Opportunities

Ruijing Bu 1*
1 Nanjing University of Finance and Economics
*Corresponding author: Brj_law2023@163.com
Published on 6 August 2025
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LNEP Vol.107
ISSN (Print): 2753-7056
ISSN (Online): 2753-7048
ISBN (Print): 978-1-80590-273-7
ISBN (Online): 978-1-80590-274-4
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Abstract

China's Company Law introduced the rule of corporate opportunity in 2005. The 2024 revision (new Art. 183) refined the rule, yet its language remains loose, giving rise to inconsistent adjudication, intricate tests, and an unbalanced burden of proof. Precisely identifying usurpation is vital to protecting corporate assets and market integrity. This paper discusses a "two-step" logical hierarchical framework based on the doctrine of corporate interest through case analysis and literature research. The framework aims to clarify the elements of the foundation and core layers for the determination of corporate opportunity and the key elements for the characterization of usurpation. The study shows that applying the "two-step" logic expands the scope of subject matter to include controlling shareholders and beneficial owners, and adds "express corporate refusal" as an exception. Although the "two-step" logic needs to be improved, it can reduce the different judgments in the same case, lay the foundation for the formation of guiding cases, and help judicial practice and corporate governance.

Keywords:

adjudication logic, duty of loyalty, corporate opportunity, usurpation behavior

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Bu,R. (2025). Logical Layering and Criteria Reconstruction for the Determination of Usurpation of Corporate Opportunities. Lecture Notes in Education Psychology and Public Media,107,74-80.

References

[1]. Wang Suyuan. (2011). Legislative improvement of the rule against usurpation of corporate opportunities.

[2]. Suqian City Intermediate People's Court of Jiangsu Province. (2023). A real estate investment consultant limited company, Lu Moubing and others damage to the interests of the company liability disputes, (Su 13 Civil Final No. 1161). https: //wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index.html? docId=930s85qhV2PMK1qBUXlB5z+Uy0B6xAzNj9vo565Xqx61KivEZdw7VpO3qNaLMqsJ3OEMKjjmUwDrdBbzbSTW24zQcKApFmCmU9EKCf5expdD7/Sj+tS92Rp+ FD2wcQV3yYq2iPmP0mEF0FwCey0xjfWGMJ31NFkP

[3]. Shanghai Baoshan District People's Court. (2017). Shanghai Yangzhi Jiada Enterprise Management Co. Ltd. and Jin Xuejun liability dispute for damaging the company's interests, (Shanghai 0113 Minchu 15982). Retrieved from https: //wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index. html?docId=uTSeDHv6CJELtLDBV8LycEhHIQVuQQpopIle/a1hh6Ve443c4buaM5O3qNaLMqsJ3OEMKjjmUwDrdBbzbSTW24zQcKApFmCmU9EKCf5expdD7/Sj+tS92Rp +FD2wcQV3yYq2iPmP0mGxmdikg6Dj YHiExwBkoGdJ

[4]. Beijing Chaoyang District People's Court. (2021). Beijing Lutu Information Technology Co., Ltd. and Bao Lingxian liability dispute for damaging the company's interests, (Beijing 0105 Minchu 63655). Retrieved from https: //wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index.html ?docId=6X8yG55tLKKdYSjjaEdc2JVogsuv+P4Dp0HW0by5w/XO4IKTWww/5LZO3qNaLMqsJ3OEMKjjmUwDrdBbzbSTW24zQcKApFmCmU9EKCf5expdD7/Sj+tS92Rp+ FD2wcQV3yYq2iPmP0mGxmdikg6DjYKZyQvVds8L4

[5]. National People's Congress of China. (2023). Company Law of the People's Republic of China, Revision 2023. Retrieved from http: //www.npc.gov.cn/npc/c2/c30834/202312/t20231229_433999.html

[6]. Lui, Lai-Ming. (2006). On the Legal Protection of Business Opportunities. Chinese Law, (5), 107-114. DOI: 10.14111/j.cnki.zgfx.2006.05.009.

[7]. Shen, Guiming. (2019). Judicial Recognition of Corporate Business Opportunities. Jurisprudence, (06), 180-192.

[8]. Sun, Guanghui. (2022). Judicial empirical study of corporate opportunity rules. Jilin University.DOI: 10.27162/d.cnki.gjlin.2022.002290

[9]. China Judicial Big Data Institute. (2021). Application of the expert auxiliary person system in judicial practice. Retrieved from https: //xysfy.hncourt.gov.cn/public/detail.php?id=1277

[10]. Liu Guangtao. (2020). Shandong Shengtuo Industrial Company liability dispute for damage to the company's interests, (Lu 09 Min Final 243 civil judgment). Retrieved from https: //wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index. html?docId=81uw4q6F26cQ6U104Dy8Az7Rv2DhwHj4f2d+8kTvT6dXkuRTGiWc0ZO3qNaLMqsJ3OEMKjjmUwDrdBbzbSTW24zQcKApFmCmU9EKCf5expdD7/Sj+tS92Rp +FD2wcQV3yYq2iPmP0mGxmdikg6DjYHKK6mqsfo7V

[11]. Zheng Qian. (2024). The construction of reverse exclusion of corporate opportunity rules in the context of the amendment of the Company Law: The "judicial path" of valid defenses. Journal of Henan University of Finance and Law, 39(01), 47-59.

[12]. Cheng Sheng. (2001). Research on the legal issues of directors usurping the opportunities of the company. Shanghai People's Publishing House, 17.

[13]. Bo, Shou-Sheng. (2002). On the principle of corporate opportunity in the United States law--Another discussion on the civil law non-competition. Collection, (0).

[14]. Zhang, Yao-Ming. (2006). On the corporate opportunity doctrine. Social Science, (9), 111-117.

[15]. Wu, H.-D. (2003). The revolution of property dematerialization and the revolutionary law of immaterial property. Chinese Social Sciences, (4), 122-133.

[16]. Feng, Guo. (2010). Exploring the rule of "prohibiting usurpation of corporate opportunities". Chinese Law Journal, (1), 96-110.

[17]. Wang, Yanming, & Wang, Hongyun. (2017). Legal regulation of state-owned enterprise executives usurping corporate opportunities. Journal of Social Sciences of Jilin University, 57(6).

References

[1]. Wang Suyuan. (2011). Legislative improvement of the rule against usurpation of corporate opportunities.

[2]. Suqian City Intermediate People's Court of Jiangsu Province. (2023). A real estate investment consultant limited company, Lu Moubing and others damage to the interests of the company liability disputes, (Su 13 Civil Final No. 1161). https: //wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index.html? docId=930s85qhV2PMK1qBUXlB5z+Uy0B6xAzNj9vo565Xqx61KivEZdw7VpO3qNaLMqsJ3OEMKjjmUwDrdBbzbSTW24zQcKApFmCmU9EKCf5expdD7/Sj+tS92Rp+ FD2wcQV3yYq2iPmP0mEF0FwCey0xjfWGMJ31NFkP

[3]. Shanghai Baoshan District People's Court. (2017). Shanghai Yangzhi Jiada Enterprise Management Co. Ltd. and Jin Xuejun liability dispute for damaging the company's interests, (Shanghai 0113 Minchu 15982). Retrieved from https: //wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index. html?docId=uTSeDHv6CJELtLDBV8LycEhHIQVuQQpopIle/a1hh6Ve443c4buaM5O3qNaLMqsJ3OEMKjjmUwDrdBbzbSTW24zQcKApFmCmU9EKCf5expdD7/Sj+tS92Rp +FD2wcQV3yYq2iPmP0mGxmdikg6Dj YHiExwBkoGdJ

[4]. Beijing Chaoyang District People's Court. (2021). Beijing Lutu Information Technology Co., Ltd. and Bao Lingxian liability dispute for damaging the company's interests, (Beijing 0105 Minchu 63655). Retrieved from https: //wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index.html ?docId=6X8yG55tLKKdYSjjaEdc2JVogsuv+P4Dp0HW0by5w/XO4IKTWww/5LZO3qNaLMqsJ3OEMKjjmUwDrdBbzbSTW24zQcKApFmCmU9EKCf5expdD7/Sj+tS92Rp+ FD2wcQV3yYq2iPmP0mGxmdikg6DjYKZyQvVds8L4

[5]. National People's Congress of China. (2023). Company Law of the People's Republic of China, Revision 2023. Retrieved from http: //www.npc.gov.cn/npc/c2/c30834/202312/t20231229_433999.html

[6]. Lui, Lai-Ming. (2006). On the Legal Protection of Business Opportunities. Chinese Law, (5), 107-114. DOI: 10.14111/j.cnki.zgfx.2006.05.009.

[7]. Shen, Guiming. (2019). Judicial Recognition of Corporate Business Opportunities. Jurisprudence, (06), 180-192.

[8]. Sun, Guanghui. (2022). Judicial empirical study of corporate opportunity rules. Jilin University.DOI: 10.27162/d.cnki.gjlin.2022.002290

[9]. China Judicial Big Data Institute. (2021). Application of the expert auxiliary person system in judicial practice. Retrieved from https: //xysfy.hncourt.gov.cn/public/detail.php?id=1277

[10]. Liu Guangtao. (2020). Shandong Shengtuo Industrial Company liability dispute for damage to the company's interests, (Lu 09 Min Final 243 civil judgment). Retrieved from https: //wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index. html?docId=81uw4q6F26cQ6U104Dy8Az7Rv2DhwHj4f2d+8kTvT6dXkuRTGiWc0ZO3qNaLMqsJ3OEMKjjmUwDrdBbzbSTW24zQcKApFmCmU9EKCf5expdD7/Sj+tS92Rp +FD2wcQV3yYq2iPmP0mGxmdikg6DjYHKK6mqsfo7V

[11]. Zheng Qian. (2024). The construction of reverse exclusion of corporate opportunity rules in the context of the amendment of the Company Law: The "judicial path" of valid defenses. Journal of Henan University of Finance and Law, 39(01), 47-59.

[12]. Cheng Sheng. (2001). Research on the legal issues of directors usurping the opportunities of the company. Shanghai People's Publishing House, 17.

[13]. Bo, Shou-Sheng. (2002). On the principle of corporate opportunity in the United States law--Another discussion on the civil law non-competition. Collection, (0).

[14]. Zhang, Yao-Ming. (2006). On the corporate opportunity doctrine. Social Science, (9), 111-117.

[15]. Wu, H.-D. (2003). The revolution of property dematerialization and the revolutionary law of immaterial property. Chinese Social Sciences, (4), 122-133.

[16]. Feng, Guo. (2010). Exploring the rule of "prohibiting usurpation of corporate opportunities". Chinese Law Journal, (1), 96-110.

[17]. Wang, Yanming, & Wang, Hongyun. (2017). Legal regulation of state-owned enterprise executives usurping corporate opportunities. Journal of Social Sciences of Jilin University, 57(6).

Cite this article

Bu,R. (2025). Logical Layering and Criteria Reconstruction for the Determination of Usurpation of Corporate Opportunities. Lecture Notes in Education Psychology and Public Media,107,74-80.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICILLP 2025 Symposium: Property Law and Blockchain Applications in International Law and Legal Policy

ISBN: 978-1-80590-273-7(Print) / 978-1-80590-274-4(Online)
Editor: Renuka Thakore
Conference website: https://2025.icillp.org/London.html
Conference date: 21 November 2025
Series: Lecture Notes in Education Psychology and Public Media
Volume number: Vol.107
ISSN: 2753-7048(Print) / 2753-7056(Online)

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