Equity Pledge Dispute Involving Shareholders of a Technology Company in Fujian

Plaintiff Wang and Defendant Chen entered into a "Loan Agreement" whereby Defendant Chen borrowed 150 ten thousand yuan from Plaintiff for a term of 6 months at a monthly interest rate of 2%. Additionally, the parties executed an "Equity Pledge Contract," under which Defendant Chen pledged 30% of its equity in Xiamen Certain Technology Co., Ltd. as security for the loan. The contract stipulated that both parties would complete the equity pledge registration with the relevant industrial and commercial authority within 10 days after signing. Following execution of the agreement, Plaintiff disbursed 150 ten thousand yuan to Defendant Chen as agreed; however, Defendant Chen failed to complete the required equity pledge registration. Upon maturity of the loan term, Defendant Chen did not repay the principal and interest. Consequently, Plaintiff filed suit requesting repayment of the principal and interest by Defendant Chen and asserted priority rights of compensation over the pledged 30% equity held by Defendant Chen.

The court orders Defendant Chen to repay the Plaintiff Wang a principal amount of 150 ten thousand yuan, plus interest calculated at a monthly rate of 2% on a base of 150 ten thousand yuan, from the date of borrowing until the date of full payment, within ten days of the effective date of this judgment. The court dismisses the Plaintiff's claim for priority compensation rights over the 30% equity stake in Xiamen Certain Technology Co., Ltd. pledged by Defendant Chen. All litigation and preservation fees for this case shall be borne by the Defendant.