When a shareholder borrows money from his own company, can he ask the company to repay it?

The company's borrowing from shareholders belongs to private lending, which has a long history and exists widely in the world. It mainly refers to the financing behavior between natural persons, between natural persons and legal persons or other organizations, and between legal persons or other organizations with money or other securities as the target.

Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases Article 23 If the legal representative or responsible person of an enterprise signs a private lending contract with the lender in the name of the enterprise, and the lender, the enterprise or its shareholders can prove that the borrowed money is for personal use by the legal representative or responsible person of the enterprise, and the lender requests that the legal representative or responsible person of the enterprise be listed as a co-defendant or a third party, the people's court shall allow it. If the legal representative or person in charge of an enterprise signs a private loan contract with the lender in the name of an individual, and the loan is used for the production and operation of the enterprise, and the lender requests the enterprise and the individual to share the responsibility, the people's court shall support it.

Tips: The above information is for reference only.

Reply time: 2021-11-04. Please refer to the latest business changes announced by Ping An Bank in official website.