Yang Lan's company has been frozen; pre-litigation preservation must be known!

[4] Compiled from: Red Star News
 
Case review
Recently, the company of renowned host Yang Lan encountered a financial turmoil, with 2.7 million yuan in assets of the company she holds a 95% stake in being frozen.

(Image source from China Judgments Online)

A recent ruling publicly disclosed by China Judgments Online shows that Xinyue Sichuang Culture Media (Beijing) Co., Ltd. applied to the court for pre-litigation property preservation, requesting the sealing and freezing of 2.7 million yuan in deposits of the respondent, Beijing Fenghua Yaji Management Consulting Co., Ltd.; if the deposits are insufficient, then seal or seize property of equivalent value to the shortfall.
 
The court deemed the application in compliance with legal provisions and ruled to enforce it. Tianyancha APP shows that Beijing Fenghua Yaji Management Consulting Co., Ltd. was established in 2015, with legal representative Shen Qi, registered capital of 5.6 million yuan, and Yang Lan holds 95% of the company's shares.
 
Subsequently, Yang Lan's side, Sunshine Media Group, and Yang Lan herself responded respectively.
 
《 [1] The People's Republic of China Civil Procedure Law
Article 152
When a people's court, in accordance with Articles 103 and 104 of the Civil Procedure Law, orders an interested party or a party to provide security when taking pre-litigation preservation or litigation preservation measures, it shall issue a written notice.
An interested party applying for pre-litigation preservation shall provide a guarantee. For an application for pre-litigation property preservation, a guarantee equivalent to the amount requested for preservation shall be provided; under special circumstances, the people's court may handle the matter as it deems appropriate. For an application for pre-litigation conduct preservation, the amount of the guarantee shall be determined by the people's court based on the specific circumstances of the case.
During litigation, if the people's court adopts preservation measures upon application or ex officio, it shall decide whether the parties should provide a guarantee and the amount of the guarantee based on the specific circumstances of the case.
 
 
[1] The author's perspective
Pre-litigation property preservation is an emergency preservation measure aimed at preventing interested parties from suffering irreparable losses. Once a preservation measure is applied to a certain property of the other party, the applicant can proceed with the lawsuit "without worry." If the case is won, even if the other party refuses to fulfill the obligations determined by the judgment, the preserved property can be enforced. Moreover, because property preservation restricts the other party's disposal of property and greatly affects the daily life and production operations of the preserved party, after weighing the pros and cons, in many cases, to satisfy the interests of both parties, most will settle, saving time and smoothly resolving the dispute.