How to understand the independence and denial of corporate personality

It is an intelligent application of legal technology for human beings to meet the needs of social life, public interests and social progress to endow the company with legal independent personality and make it a tool to raise funds and obtain profits. The independence of property, the independence of taking responsibility and independent management make the company adapt to the requirements of socialized mass production and gather a large number of people, money and things; And can operate independently around the law of value, and realize the economic purpose of enterprises to the maximum extent. Its value is mainly reflected in the positive significance of the principle of limited liability of shareholders. The principle of shareholders' limited liability makes it impossible for the creditors of a company to ask shareholders to bear responsibilities other than their capital contribution obligations when the company's assets are insufficient to pay off all debts, and the company cannot transfer debts to shareholders.

As far as independence is concerned, the company shall meet the following conditions:

1. The company should have its own assets, which should be suitable for the company's production and operation.

2. The company's personnel are independent, and the company's general manager, deputy general manager, chief financial officer, secretary of the board of directors and other senior management personnel are not employed in the controlling shareholder company; A company should have its own employees.

3. The company is financially independent. The company should have its own financial system, be able to make independent financial decisions and have its own independent bank account. There is no use of bank accounts with controlling shareholders.

4. The company's business is independent. There is no improper related party transaction between the company and the controlling shareholder or actual controller, and the company's business does not depend on the controlling shareholder or actual controller.

Legal basis:

company law

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.