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Whether it is possible to make capital contribution on behalf of others

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Whether it is possible to make capital contribution on behalf of others


        

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  • 2024-06-19 00:01:40

    It is OK to make contributions on behalf of others.
    The Company Law does not restrict the contribution of shareholders on behalf of each other. In this case, the proportion of income distribution should be determined according to the proportion of contribution stipulated in the Articles of Association. If the capital contribution of one shareholder fails to reach the amount specified in the Articles of Association, the other shareholder has paid the part of the capital contribution that has not been made on its behalf. Each shareholder shall still determine the proportion of income distribution in accordance with the proportion of capital contribution specified in the Articles of Association.

    Legal basis: Article 28 of the Company Law

    The shareholders shall pay their respective subscribed capital contributions as stipulated in the Articles of Association in full and on schedule. Where a shareholder makes a capital contribution in currency, he shall deposit the full amount of the capital contribution in currency into the bank account opened by the limited liability company; Where a capital contribution is made in non monetary property, the transfer of its property rights shall be handled according to law.
    If a shareholder fails to make the capital contribution in accordance with the provisions of the preceding paragraph, he shall not only make full payment to the company, but also bear the liability for breach of contract to the shareholders who have made full payment on schedule.

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