Precautions for corporate governance

1. The shareholders' capital contribution is not responsible for the joint responsibility

The true and sufficient registered capital of enterprises will not only help protect your customer interests, but also closely related to the vital interests of enterprises and shareholders. If the registered capital of the enterprise is false or the escape during the operation, it will cause the company's shareholders to lose the protection of the limited liability system and may be involved in a lawsuit filed by the creditors.

2. Other shareholders are involved in false funds

When investing in enterprises with other people, please be sure to pay attention to whether your partners have fulfilled their investment obligations. This not only affects the interests of the investors, but also to your vital interests. If the partner does not fulfill its investment obligations, in the case of corporate foreign debt, you may have to take responsibility to the creditors on the fault. Although you can recover from the partner after being responsible for the liability, this will undoubtedly increase the risk.

3. The establishment of a company must sign a real signature

The registration procedures when setting up the company are relatively complicated. Please be sure to sign legal documents such as the company's articles of association in person. Otherwise, once a dispute occurs, the signature behavior of others will cause great trouble, and it may even cause unexpected factors to the company's equity ownership.

4. Poor shareholders are risky

Although hidden investment is not banned by the law, it contains large legal risks. The law has a strict requirements for the standards for shareholders' qualifications for hidden investors, and the qualifications of hidden shareholders cannot fight for third parties. It is recommended to choose a company with other people with caution.

5. To acquire equity must be registered

When you acquire the company's equity from others, please be sure to go through the procedures for changing the business registration of the enterprise as soon as possible after the acquisition of the contract, otherwise it will face the risk of unable to really obtain the equity. If the registration is not registered or the third party cannot be confronted, the target equity may be transferred to others again.

6. Company charter carefully sign

The company's constitution is one of the most important legal documents of the company, and is binding on the company, shareholders, directors, supervisors, and senior management. Once the dispute occurs, it will also become the main basis for the court to judge the rights and obligations of all parties. It is recommended to carefully measure when participating in the formulation of the company's articles of association, signing it carefully, and not recommended to use format text.

7. Diligence obligation must be obeyed

The company's controlling shareholders, directors, supervisors, and senior managers have loyal obligations and diligence obligations for the company. Be sure to abide by the provisions of the company's laws and other laws and regulations, and violations of these regulations may lead to liability for damage compensation.

8. Small and medium shareholders must respect

Under the situation of changes in the economic environment, all shareholders need to work together and work together. Small and medium shareholders and controlling shareholders are also investors of the enterprise. Please treat small and medium shareholders, respect their right to participate, voting, protect their right to know, and protect their rights of profit distribution. Many companies are unable to operate normally because large shareholders do not respect small and medium shareholders. The internal disputes of the company can easily lead to an deadlock in the company's governance. Not only can it be involved in the company and shareholders in the lawsuit, the consumption of the company's manpower and material resources may cause the company to dissolve in extreme circumstances.

9. Solve the differences in accordance with the prescribed procedures

The difference between the company's investors is very normal, and it is recommended to follow the procedures stipulated by the company's articles of association to resolve disputes. Before holding a shareholders 'meeting, be sure to inform the shareholders in accordance with the period, method and content stipulated by the company's articles of association. If the notification obligations are not properly fulfilled, the shareholders' meeting and the board of directors formed may be revoked by the court. It is recommended to resolve the internal differences of the company by negotiation.

10. Clean up to the operation

The limited liability company that enterprises invest and establish may be closed due to various factors. Be careful to fulfill the liquidation obligations of investors on schedule. If the performance of liquidation obligations leads to the depreciation of the company's property depreciation, loss, damage, or loss of company accounts, and important documents, shareholders will face the risk of directly undertaking the company's entire debt.

Source: Supreme People's Court of Justice Research Institute

Edit: Li Shengrui

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