Do shareholders have a liability to pay off the company s debts?

Updated on Financial 2024-03-21
5 answers
  1. Anonymous users2024-02-07

    Under normal circumstances, the company's debts, according to the provisions of the Company Law and relevant legal theory principles, must be borne by the company, and the shareholders will not bear the company's debts, because the shareholders bear limited liability for the company, and the so-called limited liability means that when the company is established, the shareholders must pay the capital contribution in full and obtain equity according to the equity ratio agreed in the company's articles of association. After the shareholders of the company have paid the capital contribution in full, the obligations of the shareholders have actually been completed. The company's debts are borne by the company with all its own property, and have nothing to do with the shareholders to write them off.

    Legal basis

    Article 28 of the Company Law of the People's Republic of China stipulates that shareholders shall pay in full and on time the amount of capital contributions subscribed by them as stipulated in the articles of association of the company. If the shareholder makes a monetary contribution, the full amount of the monetary contribution shall be deposited into the bank account opened by the limited liability company; Where non-monetary assets are used to make capital contributions, the formalities for the transfer of property rights shall be completed in accordance with law. If a shareholder fails to pay the capital contribution in accordance with the provisions of the preceding paragraph, in addition to paying the full amount to the company, it shall also bear the liability for breach of contract to the shareholder who has paid the capital in full on time.

  2. Anonymous users2024-02-06

    Shareholders are generally not liable to pay off the company's debts. However, if a shareholder abuses the independent status of the company's legal person and the limited liability of the shareholder, or goes through the process of deregistration without liquidation, thereby seriously harming the interests of the company's creditors, he shall bear the responsibility for repaying the company's debts. In accordance with the relevant laws and regulations, if a shareholder of a company abuses his shareholder rights and causes losses to the company or other shareholders, he shall be liable for compensation in accordance with the law.

    Article 20 of the Company Law If 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. If 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, he shall be jointly and severally liable for the company's debts.

  3. Anonymous users2024-02-05

    Shareholders are generally not liable for the debts, and the company is liable for the debts of the company with all its assets. However, in the event of false capital contribution by shareholders and withdrawal of funds by shareholders, shareholders need to bear the responsibility for repaying the company's debts within the share of capital contributions.

    Legal basisArticle 3 of the Company Law of the People's Republic of China.

    The company is an enterprise legal person, has independent legal person property, and enjoys the property rights of legal person. The company is liable for the debts of the company with all its property.

    The shareholders of a limited liability company are liable to the company to the extent of their subscribed capital contributions; The shareholders of the shares of **** shall be liable to the company to the extent of the shares they subscribe.

  4. Anonymous users2024-02-04

    Legal analysis: The shareholder is not the liquidation obligor in the bankruptcy liquidation procedure, has no legal obligation to keep the financial books and the company's property, and does not bear joint and several obligations to repay the company's debts.

    Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the Republic of China (II) Article 22 When the company's assets are insufficient to pay off the debts, if the creditor claims that the shareholders who have not paid the capital contributions, as well as other shareholders or promoters at the time of the establishment of the company, bear joint and several liability for the debts of the company within the scope of the unpaid capital contributions, the people's court shall support them in accordance with law.

  5. Anonymous users2024-02-03

    Legal analysis: The shareholder is not the liquidation obligor in the bankruptcy liquidation procedure, has no legal obligation to keep the financial account books and the company's property, and does not bear the obligation to cancel the company's debts.

    Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (II) Article 22 When the company's assets are insufficient to pay off the debts, and the debtor claims that the shareholders who have not paid the capital contributions, as well as other shareholders or promoters at the time of the establishment of the company, shall be jointly and severally liable for the company's debts within the scope of the unpaid capital contributions, the people's court shall support them in accordance with law.

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