How to deal with the company's arrears

Legal analysis: When the company can't repay the arrears, it can negotiate with the person in charge of the company first. If the company refuses to repay, the creditor can directly sue the company. When there is no property under the company's name, creditors can ask the shareholders of the company whether there are any situations such as withdrawing capital contribution, false capital contribution, and swapping between the company and shareholders. Once these situations are discovered, creditors can claim that the company and shareholders shall bear joint and several liabilities.

Measures to recover the company's debts:

1. Ask the person in charge of the company to owe money.

After the debt expires, the creditor may demand the debt from the person in charge of the company with the debt certificate.

2, to the people's court.

If the company refuses to repay the arrears after they are due, the creditors may bring a lawsuit to the people's court.

3. If the company refuses to execute the judgment, the creditor may apply for compulsory execution.

After the court makes a judgment, if the company refuses to execute the court's judgment, the creditor may apply to the court for compulsory execution.

4. Inquire whether the defaulting company has evaded capital contribution, made false capital contribution, concealed property, and made fraud by the company and shareholders.

Legal basis: People's Republic of China (PRC) Company Law.

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 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 company's independent legal person status 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 a company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of creditors of the company shall be jointly and severally liable for the debts of the company.