[Direct answer]In the Beijing area, it is generally not allowed to directly add a party to the case solely based on a related relationship. It is necessary to comply with statutory circumstances or prove the existence of personality confusion. According to the "Interpretation of the Supreme People's Court on Several Issues Concerning the Change and Addition of Parties in Civil Enforcement" (amended in 2020), the change or addition of the party subject to enforcement is limited to statutory circumstances, and the related relationship itself is not a basis for adding a party. If it can be proven that there is personality confusion among related companies, that is, serious confusion in assets, business, personnel, and finances, leading to the abuse of the company's independent personality and harm to the creditor's interests, the creditor may claim that the related companies should bear joint and several liability for the debt according to law; in practice, it is more common to initiate a separate lawsuit. The creditor should focus on collecting evidence of personality confusion, such as cross-appointment of personnel, shared office premises, unified financial management, frequent fund transactions without consideration, etc., and pay attention to supporting measures such as related guarantees, right of revocation, and subrogation.

I. Problem background and typical scenarios

In practice, debtors often disperse assets and transfer businesses by establishing multiple affiliated companies, making enforcement ineffective. Creditors hope to include affiliated companies in the enforcement process, but direct additions are often not supported. When handling enforcement cases in the Beijing area, the court strictly reviews the application for additions based on statutory circumstances. Personality confusion usually requires being identified through substantive review in litigation, rather than being directly adjudicated in the enforcement process.

II. Key points of contention

There are four points that need to be clarified: Firstly, the difference between a related relationship and personality confusion. The former does not equal the latter; Secondly, the identification criteria and evidentiary requirements for personality confusion; Thirdly, whether it is possible to add a party in the enforcement process or whether it is necessary to file a separate lawsuit to claim joint and several liability; Fourthly, how to apply auxiliary measures such as related guarantees, rights of revocation, and subrogation. Generally speaking, adding a party is subject to statutory restrictions, and filing a separate lawsuit to claim joint and several liability is a more common approach.

III. Professional analysis by Henglue Law Firm

When handling cases of recourse against related parties, Henglue Lawyers typically approach the matter from three perspectives. First, regarding the confusion of legal personality: They collect evidence such as cross-appointments of personnel, shared office spaces and equipment, unified financial accounting, unpaid or clearly unreasonable fund transfers, and the mixing of business and client resources to argue that the related company has lost its independent legal personality and should bear joint and several liability for the debt. Second, regarding investment and liquidation responsibilities: They verify whether the investment between related companies has been fully implemented, whether there has been withdrawal of investment, or whether the company has been deregistered without going through liquidation. If the conditions are met, they will hold shareholders or liquidation obligors accountable. Third, regarding supporting measures: For debtors who transfer property without compensation or at a clearly unreasonable low price, they can exercise the right of rescission in accordance with Articles 538 and 539 of the Civil Code of the People's Republic of China (effective January 1, 2021); for debtors who neglect to exercise their matured creditor's rights, they can exercise the right of subrogation. At the same time, they should apply for property preservation in a timely manner to prevent assets from being further transferred. It should be noted that the burden of proof for the confusion of legal personality lies with the claimant, and the sufficiency of the evidence directly determines the success or failure of the claim. It is recommended to systematically collect evidence under the guidance of a lawyer.

IV. Practical suggestions and legal basis

Action suggestions: First, sort out the equity, personnel, and location relationships between the debtor and its affiliated companies; Second, collect evidence of financial confusion and fund transactions, and apply for investigation and evidence collection when necessary; Third, apply for additional claims in accordance with legal circumstances, and promptly file separate lawsuits to claim joint and several liability when not meeting the requirements; Fourth, simultaneously exercise the rights of revocation, subrogation, and property preservation. For matters involving enforcement and debt recovery, you may refer to the relevant provisions.Creditor's rights and debts, and enforcement; For cases involving corporate governance and equity disputes, you can refer to the following materials for reference.Business and contract disputes in enterprisesLegal basis: The relevant provisions of the "Regulations of the Supreme People's Court on Several Issues Concerning the Change and Addition of Parties in Civil Enforcement" (amended in 2020), and Articles 538 and 539 of the Civil Code of the People's Republic of China (implemented on January 1, 2021) and related provisions. The specific application shall be subject to the currently effective laws and regulations and judicial rulings.

5. Henglue Law Firm's Reminder

Firstly, the relationship of affiliation does not equate to identity confusion, and joint and several liability cannot be claimed solely on the basis of the same actual controller. Secondly, identity confusion must be identified in the substantive trial and is usually achieved through separate litigation. Thirdly, the right of revocation and the right of subrogation are powerful tools to prevent the transfer of assets. Fourthly, it is better to take protective measures as early as possible to avoid the further disposal of assets. For matters involving enforcement and recovery of debts, it can be achieved through the following methods:Creditor's rights and debts, and enforcementThe service is supported, and you can refer to it when handling difficult and complex casesSpecial servicesColumn.

VI. Frequently Asked Questions

Q1: Can the debts of an affiliated company be attributed to another company?

Generally, it is not possible to directly add additional parties to the enforcement proceedings solely based on a relationship of affiliation. The addition of an enforcement party must comply with statutory requirements. If there is identity confusion between affiliated companies, it is possible to claim joint and several liability, but this typically requires initiating a separate lawsuit for substantive review and determination, rather than directly adding additional parties to the enforcement proceedings. It is recommended to first evaluate the sufficiency of the evidence demonstrating identity confusion.

Q2: How to determine personality identity confusion?

Generally, the investigation focuses on factors such as whether employees work in different positions simultaneously, whether they share office spaces and equipment, whether financial transactions are unified in accounting and management, whether there are frequent fund transfers without reasonable consideration, and whether there is confusion between business operations and customer resources. Multiple pieces of evidence are needed to corroborate each other and form a comprehensive fact of confusion. The burden of proof lies with the party making the claim.

Q3: What evidence do we need to collect?

It can collect information such as industrial and commercial registration and equity information, employee social insurance and labor contracts, office leases and utility payment receipts, bank transaction records and transfer records, contracts and invoices, communication records of customers and business transactions, etc. When necessary, it can apply to the court for investigation and evidence collection or audit to strengthen the evidence chain.

Q4: What is the difference between directly suing a related company and applying for enforcement of additional obligations?

The implementation of additional enforcement is subject to statutory restrictions, with strict review and limited scope; separate prosecution allows for the assertion of personality confusion and joint and several liability in substantive trials, with a broader scope of application but a relatively long cycle. The two approaches can be used in combination: first, identifying clues during enforcement, and then confirming liability through litigation.

Q5: What should I do if I discover that the other party is transferring their assets?

According to the provisions of the Civil Code, the right of revocation may be exercised to request the revocation of acts of gratuitous disposition or transfer of property at an obviously unreasonably low price; if the debtor fails to exercise the due creditor's rights, the right of subrogation may be exercised. At the same time, apply for property preservation to prevent the assets from being further transferred. Both the right of revocation and the right of subrogation have statutory time limits, and they should be claimed as soon as possible.

The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limit. →Legal services for creditor-debtor disputes·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.