Influence of litigation on listed companies

The impact of litigation on the company is that if the company loses the case, it will face economic and reputation losses. The outcome of litigation usually involves economic compensation, compensation or wages. It will also be recorded in the company's integrity file and publicized to the public, which will have a certain impact on the company's reputation. Creditors may apply to the court to seal up the company's property in the name of an individual and demand repayment. Because the occurrence of labor disputes, to a certain extent, reflects the company's illegal behavior, or is a violation of labor laws and regulations.

First, the disadvantages of a one-person limited liability company

1. Confusion between corporate personality and shareholder personality

Because there is only one shareholder in a one-person limited liability company, the traditional supervision mode of mutual supervision and restriction cannot be realized in a one-person limited liability company, which makes it possible for one-person shareholders to take the blame for personal interests. To a certain extent and under certain conditions, the relative risk of trading with a one-person limited liability company is greatly increased, which is not conducive to maintaining the normal order of the market economy.

2. It is not conducive to protecting the rights of creditors.

As a limited company, its external responsibility is limited, but in the enterprise, due to the lack of internal supervision, it is impossible to ensure that shareholders can operate and operate in full accordance with the law, and it is easy to generate a large number of debts that cannot be paid off because of "limited liability of shareholders", which makes honest and law-abiding creditors suffer losses.

3. The uniqueness of shareholders in a one-person limited liability company makes it difficult for the traditional corporate governance structure to play its role.

The traditional corporate governance structure focuses on the adjustment of ownership and share capital, as well as the relationship between shareholders and directors. However, in a one-man company, due to the simplification of shareholders, this system is difficult to play a practical role. It is easy to cause the company to die because of irrational management.

Second, what impact does labor arbitration have on the company?

Labor arbitration will not have any impact on the company. Labor arbitration is a legal way to solve labor disputes between companies and employees. The result of this labor arbitration award is not an administrative penalty, so it will not have any impact on the company's operation, but it will have a negative impact on the company's reputation in the government and society more or less. If the company can negotiate, it will try to negotiate with employees.

The relevant legal basis of this article.

Article 2 of the Provisions of the Supreme People's Court on the Attachment, Seizure and Freezing of Property in Civil Execution by People's Courts stipulates that the people's courts may attach, detain and freeze the movable property possessed by the person subjected to execution, the real property registered in the name of the person subjected to execution, specific movable property and other property rights. Unregistered buildings and land use rights shall be determined according to the approval documents of land use rights and other relevant evidence. If the third party confirms in writing that the property belongs to the person subjected to execution, the people's court may seal up, detain or freeze the movable property possessed by the third party or the immovable property, specific movable property and other property rights registered in the name of the third party.