Is it legal for shareholders to lend money to the company?

Legal analysis: It is legal for shareholders to lend money to the company. The law does not restrict shareholders from lending money to the company. If shareholders are not senior managers, directors or supervisors of the company, and have paid their subscribed registered capital in full, the law does not prohibit shareholders from providing loans to the company. To sum up, shareholders who are not related personnel who are prohibited from providing loans to the company by law and have paid their share capital in full can legally lend to the company.

Legal basis: Article 115th of the Company Law of People's Republic of China (PRC). The company may not provide loans to directors, supervisors and senior managers directly or through subsidiaries.

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 1 The term "private lending" as mentioned in these Provisions refers to the financing behavior between natural persons, legal persons and unincorporated organizations. These provisions shall not apply to financial institutions and their branches engaged in loan business established with the approval of the financial supervision department, as well as disputes arising from loans and other related financial businesses.