What will happen if the company is sued for arrears?

Where a legal person is sued for company debts, it shall bear the following consequences:

1, will be fined, and the debtor will bear the liquidated damages.

2. If the court decides not to repay the loan, it will be included in the credit blacklist; For the purpose of illegal possession, defrauding a large amount of public or private property by fictional facts or concealing the truth may constitute fraud and will be investigated for criminal responsibility.

3. If the person subjected to execution fails to perform the obligations specified in the legal documents according to the notice of execution, the people's court has the right to inquire about the deposits, bonds, stocks, fund shares and other property of the person subjected to execution from the relevant units. The people's court has the right to seal up, freeze, transfer or change the property of the person subjected to execution according to different circumstances. The property inquired, sealed up, frozen, transferred or changed in price by the people's court shall not exceed the scope of obligations that the person subjected to execution shall perform.

First, the influence of the company's sued debts on legal persons.

The influence of the debt of the sued company on the legal person is that the enterprise, as a legal person, must be represented by the legal representative or entrusted by the legal representative to participate in the litigation, which is different from the natural person. Therefore, if the company is sued, the legal representative should participate in the lawsuit. The company is an independent legal subject, and the company should bear the responsibility when it is sued. In principle, only company property can be executed. But in order to guarantee the rights of creditors, the company is urged to fulfill its obligations. When the company is included in the list of people who have been executed for breach of trust because it has no executable property, it will also affect the legal representative and take measures to restrict consumption.

Second, what are the consequences of being sued for being unable to repay debts?

The consequence that the sued debt cannot be repaid will be that the creditor can apply to the court for enforcement measures such as seizure, freezing and transfer. Remind you that if there is really no property available for execution, you can suspend execution and resume execution when there is property.

3. What if the executed company has no property to execute?

If the executed company has no property to execute, the people's court has the right to take enforcement measures to inquire about the deposits, bonds, stocks, fund shares and other property of the executed company from the relevant units. Seal up, freeze, transfer or change the price of the company's property according to different circumstances. If there is really no property available for execution, the people's court shall make a ruling to suspend execution, and then continue execution when it is found that the executed company has other property.

Four. What is the situation of enterprise legal person? In addition to the liability of the legal person, the legal representative may be given administrative sanctions and fines. If the case constitutes a crime, criminal responsibility shall be investigated according to law?

1, engaging in illegal business beyond the business scope approved and registered by the registration authority;

2. Concealing the truth from the registration authority or the tax authority or practicing fraud;

3. Withdrawing funds or hiding property to avoid debts;

4. Disposing of property without authorization after dissolution, cancellation or bankruptcy;

5. Failing to apply for registration and announcement in time at the time of change or termination, causing great losses to the interested parties;

6, engaged in other activities prohibited by law, damage the national interests or social public interests.

To sum up, legal persons will be restricted from high consumption because legal persons are different from natural persons. If the company is sued, the legal person must participate and bear the burden together. If there is not enough property to implement the company's property, companies and legal persons will be included in the list of dishonesty.

Legal basis:

Article 3 of People's Republic of China (PRC) Company Law

A company is an enterprise legal person, with independent legal person property and legal person property rights, and 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 the 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.