legal ground
Article 204 of the Company Law of People's Republic of China (PRC)
If a company fails to notify or announce its creditors in accordance with the provisions of this Law when it merges, divides, reduces its registered capital or liquidates, the company registration authority shall order it to make corrections and impose a fine of not less than 10,000 yuan but not more than 100,000 yuan.
Those who conceal property, make false records on the balance sheet or list of property or distribute property before paying off debts shall be ordered by the company registration authority to make corrections, and be fined at least 5% 10% of the amount of property distributed before paying off debts; The directly responsible person in charge and other directly responsible personnel shall be fined 1 more than 10,000 yuan1less than 0,000 yuan.