Legal Information

Firm news, insights on new laws, and frequently asked questions.

24 2026-10

If the company is liquidated, who should the employees go to to get their money back?

After the enterprise is deregistered, the economic compensation for employees' wages will not be extinguished. It will be paid off preferentially in accordance with the law. If the enterprise is not liquidated before being deregistered, the shareholders or responsible parties will bear legal responsibilities. It is recommended to declare the creditor's rights as soon as possible.

Learn more >
24 2026-10

After the company is deregistered, who will bear the debt?

The revocation of a company's business license does not extinguish its legal person status, and its debts shall still be borne by the company's assets. If the liquidation obligors fail to conduct liquidation and result in the loss of the company's assets, they shall compensate for the losses within the scope of the losses, and the creditors shall assert their rights in a timely manner.

Learn more >
24 2026-10

Does the nominal legal representative need to bear the debt?

The nominal legal representative does not bear the company's debts directly because of the registration of his/her name; he/she is only liable under statutory circumstances such as property confusion, embezzlement, guarantee, or negligence in liquidation, but may be subject to credit restrictions.

Learn more >
24 2026-10

How to determine the identity confusion of affiliated companies?

Can the confusion of the legal personality of affiliated companies lead to the denial of the independent legal personality of each company and the imposition of joint and several liability? The core issue is the confusion of personnel, business, and financial affairs, especially the confusion of assets, as defined in Article 23 of the Company Law and the Nine Civil Cases Interpretation.

Learn more >
24 2026-10

How can shareholders who embezzle their investment funds be held accountable?

The shareholders who withdraw their capital shall bear supplementary compensation liability for the company's debts within the scope of the withdrawn capital and interest; assistants shall bear joint and several liability. Additional litigation or enforcement may be initiated, and it is necessary to provide fixed capital verification and transaction records as evidence.

Learn more >
24 2026-10

Are shareholders responsible for the company's debts?

In principle, shareholders are liable for their obligations within the limits of their contributions. However, there are exceptions where they must bear responsibility, such as identity confusion, failure to separate the assets of a single-member company from personal assets, failure to make full contributions or withdrawing contributions, and negligence in liquidation. These cases must be judged ...

Learn more >
24 2026-10

How is the statute of limitations for subrogated recourse calculated?

The subrogated recourse is subject to a three-year ordinary statute of limitations, which starts from the date when the creditor's claim becomes due and the debtor fails to exercise his sub-creditor's right. It is also subject to the statute of limitations of the sub-creditor's right, and the counterparty may raise a statute of limitations defense.

Learn more >
24 2026-10

How much is the compensation for the expropriation of residential land per mu?

The compensation for the expropriation of residential plots is not based on a uniform price per mu. It is calculated based on the comprehensive land price of the area, resettlement assistance, and the value of the house and other structures on the land; even if the plots are unregistered, but there is actual use and proof from the village committee, people can still claim their rights according to...

Learn more >