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Will enforcement involve shareholders

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Will enforcement involve shareholders


        

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  • 2024-06-15 15:00:48

    Enforcement generally does not involve shareholders. Except that the shareholders and the company are jointly and severally liable. According to relevant laws and regulations, if the company's shareholders abuse the independent status of the company as a legal person and the limited liability of shareholders, causing the company to bear external liabilities, they shall bear joint and several liabilities for the company's debts.

    Legal basis

    Article 20 of the Company Law [Prohibited acts of shareholders] The shareholders of the company shall abide by laws, administrative regulations and the articles of association, exercise their rights according to law, and shall not abuse their rights to damage 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 damage 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 according to law.
    Where a shareholder of a company abuses the independent status of the company as a legal person and the limited liability of the shareholder, evades debts and seriously damages the interests of the company's creditors, he shall bear joint and several liability for the company's debts.

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