When a limited liability company goes bankrupt, shareholders do not need to bear the company's debts as long as they fulfill their capital contribution obligations. If an enterprise as a legal person meets the bankruptcy conditions, it may apply to the court for bankruptcy liquidation and pay off its debts; If the bankrupt has no property to distribute, the people's court shall decide to terminate the bankruptcy proceedings and the debts will not be paid off. Legal basis: Article 3 of People's Republic of China (PRC) Company Law is an enterprise legal person with independent legal person property and 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 2 of the Enterprise Bankruptcy Law of the People's Republic of China. If an enterprise as a legal person is unable to pay off its due debts, its assets are insufficient to pay off all its debts or it obviously lacks solvency, it shall clear up its debts in accordance with the provisions of this Law. Article 7 The debtor may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation under the circumstances specified in Article 2 of this Law. If the debtor is unable to pay off the debts due, the creditor may apply to the people's court for reorganization or bankruptcy liquidation of the debtor. If an enterprise as a legal person has been dissolved but has not been liquidated or its assets are insufficient to pay off its debts, the person liable for liquidation according to law shall apply to the people's court for bankruptcy liquidation. Article 113 After the bankruptcy expenses and interest-bearing debts are paid off, the bankruptcy property shall be paid off first in the following order: (1) The wages, medical care, disability allowance and pension expenses owed by the bankrupt to the employees, the basic old-age insurance and basic medical insurance expenses owed to the employees' personal accounts, and the compensation that should be paid to the employees according to laws and administrative regulations; (2) Social insurance premiums and taxes owed by the bankrupt other than those specified in the preceding paragraph; (3) Ordinary bankruptcy claims. If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion. Article 120 If the bankrupt has no property to distribute, the administrator shall request the people's court to make a ruling to terminate the bankruptcy proceedings. After the final distribution is completed, the administrator shall promptly submit a report on the distribution of bankruptcy property to the people's court and request the people's court to make a ruling to terminate the bankruptcy proceedings. The people's court shall, within fifteen days from the date of receiving the request of the administrator to terminate the bankruptcy proceedings, make a ruling on whether to terminate the bankruptcy proceedings. If the ruling is terminated, it shall be announced. Article 121 The administrator shall, within 10 days from the date of termination of bankruptcy proceedings, cancel the registration with the original registration authority of the bankrupt on the basis of the ruling of the people's court to terminate bankruptcy proceedings. Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Enterprise Bankruptcy Law of the People's Republic of China (1) Article 1 If the debtor is unable to pay off the debts due, and under any of the following circumstances, the people's court shall determine that it has bankruptcy reasons: (1) The assets are insufficient to pay off all the debts; (2) the obvious lack of solvency. The people's court will not support the claim that the debtor has no bankruptcy reasons on the grounds that the person who is jointly and severally liable for the debtor's debts has not lost his solvency. Article 2 If the following circumstances exist at the same time, the people's court shall determine that the debtor cannot pay off the debts due: (1) The relationship between creditor's rights and debts is established according to law; (2) The debt performance period has expired; (3) The debtor has not fully paid off his debts.
Legal objectivity:
Article 3 of the Company Law A company is an enterprise legal person, with independent legal person property and 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 4 Shareholders of a company shall enjoy the right to return on assets, participate in major decisions and choose managers according to law.