What does it mean for the company to be auctioned by the court?

Legal analysis: Auction is an act that the people's court forcibly auctions the sealed-up, distrained and frozen property according to law in order to realize the creditor's rights of the executed person, so as to obtain the auction price. As two main auction types, the asset auction of bankrupt enterprises and the auction in civil execution of people's courts will be encountered in practice, but their understanding has not yet formed a unified understanding in the auction industry.

Legal basis: Provisions of the Supreme People's Court on Auction and Sale of Property in Civil Execution by People's Courts.

Article 18 If multiple uses of property are inseparable, or separate auctions may seriously impair their value, they shall be auctioned together.

Article 19 If there is no bidder in the auction or the highest bid price of the bidder is lower than the reserve price, if the application executor or other enforcement creditors present at the auction apply for or agree to accept the auction property at the reserve price set at the auction, they shall hand it over to them to pay off their debts.

If more than two executing creditors apply for auction of property to pay off debts, the creditor with the first legal repayment order will be given priority; If the repayment order is the same, the beneficiary shall be determined by drawing lots. If the amount of creditor's rights payable by the debtor is lower than the price of the collateral, the people's court shall order it to make up the difference within a time limit.