Frequently Asked Questions

24 2026-10

Is social security-related disputes accepted for labor arbitration?

Social insurance compensation disputes fall within the scope of labor arbitration, while simply making up for the payment of social insurance contributions constitutes an administrative complaint. The statute of limitations for arbitration is one year, so it is recommended to first determine the nature of the dispute and then choose the appropriate legal path.

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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.

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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.

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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.

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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.

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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.

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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 ...

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