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other shareholders of Shin have received dividends during that
time. In addition, Shin made large, unreimbursed distributions
to Lily and distributions to satisfy Lily's contractual
obligation at a time when she owned less than 3 percent of Shin.
In 1986, Henry transferred his 18-percent share of Shin to a
member of the Wan Yang Chen family, Daniel Chen (Daniel). Also
in 1986, a dispute arose between the Wan Yang Chen family and the
Lily Chan family as a result of Shin's failing to pay a share of
its profits to Wan Yang under a prior agreement. In the prior
agreement, it was agreed that Henry, Lily, and Wan Yang would
divide Shin's profits equally among them. However, Wan Yang
received payments pursuant to the agreement for only 1 or 2
years. Daniel was causing problems at Shin because he felt that
the Lily Chan family had acquired too many of Henry's assets to
which the Wan Yang Chen family had a right. Daniel also
improperly removed some corporate documents from Shin's office.
Stanley felt that he could not handle the situation and flew to
the United States to tell petitioner husband that he was
resigning. Edward Chiu (Edward) replaced Stanley as Shin's
general manager. Petitioner husband and Edward met in 1975
through business dealings between Eastimpex and a food supply
company that Edward owned. Petitioner husband and Edward were
close personal friends. Petitioner husband personally chose
Edward to succeed Stanley as Shin's general manager.
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Last modified: May 25, 2011