Legal basis: Civil Code of People's Republic of China (PRC).
Article 68 If the liquidation is completed and the registration is cancelled according to law for one of the following reasons, the legal person shall be terminated: (1) The legal person shall be dissolved; (2) The legal person is declared bankrupt; (3) Other reasons prescribed by law. Where laws and administrative regulations stipulate that the termination of a legal person needs to be approved by the relevant authorities, such provisions shall prevail.
Article 70 Where a legal person is dissolved, except for merger or division, the liquidation obligor shall form a liquidation group in time for liquidation. Directors of legal persons, directors and other members of executive bodies or decision-making bodies are liquidation obligors. Where laws and administrative regulations provide otherwise, such provisions shall prevail. If the liquidation obligor fails to perform the liquidation obligation in time and causes damage, it shall bear civil liability; The competent authority or interested party may apply to the people's court to appoint relevant personnel to form a liquidation group for liquidation.