What are the risks for the shareholders of the company?

Legal analysis: after the establishment of the company, shareholders can't sit back and relax. Due to poor management or legal status problems, shareholders have to bear corresponding risks:

1. Investment loss risk

Shareholders have the obligation to contribute to the company, but their contribution may not be recovered. If the company's management is not good or the company's selected projects are wrong, as well as other unforeseen factors, it may lead to the company's failure, and the shareholders' investment will be wasted. The more shareholders invest, the greater the risk of loss.

2. The risk of not getting benefits

After shareholders make contributions to the company, they will get profits and get returns if they operate well. If the company is not well managed, there will be no profit or loss, and shareholders will not get any profit, which is also a risk.

3. Legal risks

(1) According to the relevant provisions of the Company Law of People's Republic of China (PRC), shareholders of a company who abuse their rights and cause losses to the company or other shareholders shall be liable for compensation.

(2) If the company's shareholders abuse the independent status of the company as a legal person and the shareholders' limited liability to evade debts, which seriously damages the interests of the company's creditors, they shall be jointly and severally liable for the company's debts, that is, the shareholders and the company are joint debtors.

Legal basis: Article 20 of the Company Law of People's Republic of China (PRC).

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.