Expansion: Under what circumstances will shareholders bear the influence of joint and several liability?
At this time, we should consider the nature of the company. If the enterprise is a limited liability company or a joint stock limited company, the shareholders shall bear limited liability with their share of capital contribution. If the shareholders have fully contributed their capital in accordance with the shareholders' agreement, they will not be liable, that is to say, the insolvent shareholders of the company have no obligation to pay off the operating losses. If the shareholder fails to pay the proportion of capital contribution in full before, he/she needs to make up the capital contribution according to the regulations, and he/she is not required to bear the debt liability after making up.
If the enterprise is a partnership, then the shareholders need to bear the repayment responsibility. According to Article 2 of the Partnership Enterprise Law, a general partnership enterprise is composed of general partners, and the partners are jointly and severally liable for the debts of the partnership enterprise, that is, no matter what your contribution ratio is, once the debts of the enterprise cannot be paid off, the partners and shareholders will bear unlimited liability for compensation. The unlimited repayment liability mentioned here means that if the assets of the enterprise are insufficient to repay the debts of the enterprise, it will be added to the personal assets of shareholders to pay off the debts of the enterprise.
There is also a kind of guarantee that needs to bear the repayment responsibility. Sometimes, although the loan is made in the name of an enterprise, the lending institution will add a legal person or shareholder as a guarantor. If a shareholder makes a guarantee in the process of enterprise loan, he must bear the guarantee responsibility. If the enterprise can't repay the loan normally, the shareholders who make the guarantee must bear the repayment responsibility.
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