China's Bolton (03318.HK) announced that it has filed a legal action against Liu Qiu Ming and Zhiyong.

The claim in the lawsuit stems from a share transfer agreement signed on 26 January 2016 by the company as the buyer, the two wholly owned entities of the defendant as the seller, and the two as guarantors.

Under the equity transfer agreement, the seller will sell Kimree, Inc., together with its subsidiaries, to the Company for RMB 7.5 million. Under the terms of the Non-Competing Commitment under the Share Transfer Agreement, the two parties may not and must ensure that any other person associated with them and the seller must not compete with the target group within the time specified after completion of the transaction.

The company filed a legal action in Hong Kong to issue a communication order to bring a claim against two persons for breach of the non-compete terms of engagement. The company requested the court to issue a restraining order prohibiting all of its violations of the non-compete terms and bring a claim against the two parties. (ice/da) ~

ASDAK Financial News

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