Is it illegal for a company to close down and sell assets?

Legal analysis: this kind of behavior is not desirable. The debtor transfers the property free of charge, trades at an obviously unreasonable price, provides property guarantee for the debts without property guarantee, pays off the unexpired debts in advance, and abandons the due creditor's rights.

Legal basis: Article 35 of People's Republic of China (PRC) Bankruptcy Law. During the period from six months before the people's court accepts the bankruptcy case to the date of bankruptcy declaration, the act of concealing the property of the bankrupt enterprise is invalid, and the liquidation group has the right to apply to the people's court for recovery of the property. The recovered property is incorporated into the bankruptcy property. Shareholders who withdraw their capital contributions in the form of loans shall be investigated and dealt with by the industrial and commercial bureau, and serious cases may be handed over to the public security organs for handling.