On July 1, 2024, the new Company Law was officially implemented. Lawyer Li Kejun, a partner of Gaopeng Shenzhen Law Firm, gave an interview to Guangzhou Daily reporters and explained the strengthening of responsibilities for shareholders, directors, and supervisors under the new Company Law.

Screenshot of Guangzhou Daily interview page

Lawyer Li Kejun believes that the newly revised Company Law further improves the original Company Law. Among them, "piercing the company veil" means that when the controlling shareholders abuse the independent personality of the company, the judicial department may deny the legal personality of the company, break through the limited liability of the company, and have shareholders or even related parties of the company bear joint and several liability to the company. This revision of the Company Law not only increases the vertical penetration of the original holding shareholders responsible, but also increases the horizontal penetration of the company's related parties.

The new Company Law clarifies the liability of shareholders for capital contributions, including no longer having unlimited time limits for capital contributions, the right to contribute, and the inability to withdraw or arbitrarily reduce capital contributions. Otherwise, not only shareholders but also directors, supervisors, and executives may be held responsible.

Lawyer Li Kejun also pointed out that if a company has only one shareholder, if the shareholder cannot fully prove that their property is separate from the company, they will be jointly and severally liable for the company's debts; For companies with only one individual shareholder, the risk to shareholders is relatively high and should be avoided as much as possible.