How do shareholders of a one-person limited liability company prove that their property is independent of the company's property?

The most effective evidence to prove that the personal property of a one-person limited liability company is independent of the company's property is to provide audit reports and complete accounting books. The audit report needs to be formed at the end of each fiscal year, and the capital flow of each company should be clearly defined in the audit report.

Legal analysis

If shareholders of a one-person limited liability company need to prove that their property is not confused with the company's property, they need to provide audit reports, financial accounting reports, detailed bank statements of the company in basic deposit account, detailed bank statements of shareholders, annual inspection reports of enterprises as legal persons, housing lease contracts, social security payment records, labor contracts, employee rosters, etc. to prove their business independence. The contents of audit reports and financial accounting reports must conform to accounting standards and other normative documents. There is no obvious violation of common sense. It is necessary to keep the company's accounts intact and keep the company's original accounting vouchers. Otherwise, the court may consider that the shareholders have not provided evidence to prove that their property and the company's property are independent of each other on the grounds that the aforementioned evidence can't completely and truly reflect the actual operation of the company, thus determining that the shareholders are confused with the company's property and judging that they are jointly and severally liable for the company's debts. In addition, as far as the audit report is concerned, it is best for the company not to entrust an accounting firm to issue it unilaterally, but to apply to the court as much as possible in the lawsuit and entrust a qualified accounting firm recognized by the court or the other party to issue it. As a shareholder of a one-person limited liability company, it is not easy to prove that his property is not confused with the company property. Many shareholders are jointly and severally liable for the company's debts because they cannot prove that their property is independent of the company's property. Therefore, the shareholders of a one-person limited liability company should pay attention to the fact that the company should try to hire professional accountants, standardize the company's financial system and keep the original documents of the company. At the same time, shareholders also need to separate their personal or spouse's property from the company's property, that is, they are not allowed to collect the company's money from their personal or spouse's bank account, and the company's funds are not allowed to be transferred to their personal or spouse's bank account casually.

legal ground

According to Article 63 of the Company Law, if the shareholders of a one-person limited liability company cannot prove that the company's property is independent of the shareholders' own property, they shall be jointly and severally liable for the company's debts.