What effect does the articles of association have on shareholders?

The articles of association are binding on shareholders. Binding performance: it is not limited to the shareholders who drafted and drafted the articles of association, but also the same for the shareholders who later joined the company, which is determined by the autonomy of the articles of association; If a shareholder violates his obligations, the company may bring a lawsuit against him according to the articles of association.

legal ground

Article 11 of the Company Law of People's Republic of China (PRC)

To establish a company, the articles of association must be formulated according to law. The Articles of Association are binding on the Company, shareholders, directors, supervisors and senior management.

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.