What is the lifting of the veil of a corporate legal person?

That is, the system of denial of the company's legal personality means that when the controlling shareholder violates the principle of good faith in order to evade legal obligations or responsibilities, abuses the legal personality or the limited liability treatment of the shareholder, and causes serious damage to the interests of creditors, the court or arbitration institution has the right to order the controlling shareholder to directly perform legal obligations and bear legal responsibilities to the company's creditors.

The system of denial of corporate legal personality is premised on the existence of the company's legal personality. The system of denial of corporate personality and the system of limited liability of shareholders are one and the same, and together constitute the core content of the modern company system.

Lifting the corporate veil is also called the corporate personality denial system. It refers to a legal system in which the shareholders of a company abuse the independent status of the company's legal person and the limited liability of shares to evade debts and seriously damage the interests of creditors: creditors can bypass the legal personality of the company and directly request the shareholders who abuse the company's personality to bear joint and several liability for the company's debts. Look!

This is a translation from a foreign language, piercing the veil of the company. That is to say, some companies, especially some one-person ****, use their own personal accounts for entry and exit, and the company is not independent and is virtually non-existent. In this case, if the company has external debts, but the company has no money at all, and in fact the legal person of the company and the individual are mixed up, then the individual can be sued.

Moreover, the burden of proof is on the company and the individual to prove whether there is confusion.

Articles 20 and 64 of the Companies Act.

Article 20 The shareholders of the company shall abide by the laws, administrative regulations and the articles of association of the company, exercise the rights of internal shareholders in accordance with the law, and shall not abuse the rights of shareholders to harm the interests of the company or other shareholders; The independent status of the company's legal person and the limited liability of shareholders shall not be abused to harm the interests of the company's creditors.

Where a shareholder of a company abuses his rights as a shareholder and causes losses to the company or other shareholders, he shall be liable for compensation in accordance with law.

Where a shareholder of a company abuses the independent status of the company's legal person and the limited liability of shareholders to evade debts and seriously harm the interests of the company's creditors, they shall be jointly and severally liable for the company's debts.

Article 64 If a shareholder of a one-person limited liability company cannot prove that the company's property is independent of the shareholder's own property, he shall be jointly and severally liable for the company's debts.

It is necessary to affirm or say that it is a system for the establishment of a one-person limited liability company, which is mostly to encourage the investment of individual rights holders through the establishment of the personality of the company law. The so-called corporate personality means that the company, as the subject of legal fiction, uses all its own property to pay off its own debts, rather than the company's shareholders bear unlimited joint and several liability for all debts with their own property. If the company's assets are insufficient to pay off its debts, the company is declared bankrupt and the shareholders do not have to use their personal property to compensate for the additional damages.

However, if it is a shareholder of the company, of course, since it is a one-person limited liability company, there is only one shareholder. If the company's property is not separated from one's own private property, for example, one's own company property is confused with one's own personal family property, and the company's financial accounting books are not clear, the law will "lift the veil of the company's legal personality" and directly hold the shareholders accountable. In this way, shareholders are prevented from taking advantage of the company's personality system to the detriment of creditors.

As to whether the property is commingled, the burden of proof lies with the shareholders. So there will be the above provisions. You can refer to the provisions of Article 20 of the Company Law to help you understand.

It's up to the proponents to assert it.

The burden of proof refers to BAI

The parties have the obligation to collect or provide evidence for their own claims, and have the responsibility to use the evidence to prove that the facts of the case are established or in favor of their own claims, otherwise they will bear the risk that their claims cannot be established.

The Several Provisions of the Supreme People's Court on Evidence in Civil Proceedings uphold the principle that whoever asserts the burden of proof shall bear the burden of proof.