Should shareholders lose money if the company loses money?

Legal analysis: If the company suffers financial losses, the responsibilities of shareholders need to be determined according to the contract signed by both parties. If both parties agree that one party will bear the loss alone, other shareholders will not have to bear it. If it is stipulated that the losses shall be borne by both parties in proportion to their capital contribution, the shareholders shall also bear the losses in proportion to their capital contribution. The shareholders' meeting discussed and adopted the profit distribution plan and the loss compensation plan. If it is a partnership, the partnership agreement shall not stipulate that all profits shall be distributed to some partners or all losses shall be borne by some partners.

Legal basis: People's Republic of China (PRC) Partnership Enterprise Law.

Article 33 The profit distribution and loss sharing of a partnership enterprise shall be handled in accordance with the partnership agreement. If the partnership agreement is not stipulated or clearly stipulated, it shall be decided by the partners through consultation; If negotiation fails, the partners shall allocate and share the capital contribution in proportion to the paid-in capital; If the proportion of capital contribution cannot be determined, it shall be equally distributed and shared by the partners. The partnership agreement shall not stipulate that all profits shall be distributed to some partners or all losses shall be borne by some partners.

Article 40 A partner shall bear unlimited joint and several liabilities, and if the amount of repayment exceeds the loss sharing ratio stipulated in the first paragraph of Article 33 of this Law, he shall have the right to recover from other partners.