Since the loan is issued in the name of the company, it is the company, not its shareholders, that bears the repayment responsibility. According to relevant regulations, major issues involving the company's operation must be decided and agreed by the board of directors and the shareholders' meeting. Loans in the name of the company should consider the repayment ability of the company and vote after the consent of shareholders. If the company loses money after the loan, shareholders can't pay dividends and bear the losses, which can only happen when the company cancels the liquidation. Shareholders shall assume obligations with shares of the registered capital of the company.

Legal analysis

For the company's nominal loan, the responsibility shall be borne by the company, and the shareholders need not bear the responsibility. Because the company is a legal person with independent subject qualification, it can bear civil liability independently. In the name of the company, the company needs to repay the loan. If other shareholders participate in and use the funds, they will be responsible. Because the loan is issued in the name of the company and the funds are used, this is the act of withdrawing registered capital. This is a very serious escape behavior. Strictly speaking, it is suspected of a criminal offence. Theoretically, all bank loans need the resolution of the company's board of directors, but the absence of the resolution of the board of directors does not affect the effectiveness of the contract. The legal representative of a limited liability company shall be the chairman of the company. Borrowing in the name of the company shall be valid, and the company shall bear the responsibility for repayment. A limited liability company undertakes debts with all its assets. As long as shareholders fulfill their capital contribution obligations, there is no shareholder responsibility. The debt is limited to the amount of capital contribution, and the debt shall be borne by the company. Bank loans entering the company account belong to the company's property. If the company chairman misappropriates company funds for private purposes, he may be accused of misappropriating public and private property.

legal ground

Company Law of the People's Republic of China

Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.

Article 4 Shareholders of the company shall enjoy the right to return on assets, participate in major decision-making and select managers according to law.

Article 20 Shareholders of a company shall abide by laws, administrative regulations and the articles of association, exercise their rights according to law, and shall not abuse their rights to harm the interests of the company or other shareholders; The independent status of the company as a legal person and the limited liability of shareholders shall not be abused to harm the interests of the company's creditors. Shareholders of a company who abuse their rights and cause losses to the company or other shareholders shall be liable for compensation according to law. Shareholders of a company who abuse the independent status of the company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of the company's creditors shall be jointly and severally liable for the company's debts.