How to determine the withdrawal of capital contribution

Legal analysis: whether the shareholders of the company deliberately withdraw their capital contribution, and if they have no normal business dealings, loan relationship or other basis, they may be suspected of withdrawing their capital contribution for a long time without compensation. In violation of the provisions of the Company Law, the company withdrew its capital contribution after the capital verification was established.

Legal basis: Article 12 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of People's Republic of China (PRC).

After the establishment of the company, if the company, shareholders or creditors of the company request the relevant shareholders to withdraw their capital contribution on the grounds that their behavior conforms to one of the following circumstances and damages the company's rights and interests, the people's court shall support it: (1) making false financial and accounting statements and falsely increasing profits for distribution; (2) Transferring capital contribution through fictitious creditor-debtor relationship; (3) Transfer capital contribution by using related party transactions; (4) Other acts of withdrawing capital contribution without legal procedures.