Legal basis: People's Republic of China (PRC) Company Law.
Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.
Article 199 Where the promoters and shareholders of a company make false capital contributions and fail to deliver the monetary or non-monetary property contributions on time, the company registration authority shall order them to make corrections and impose a fine of not less than 5% but not more than 15% of the amount of false capital contributions.