Private limited companies sign financial management contracts with individuals. When the contract expires, the company is unable to repay its debts. What responsibility will the legal person have? Is

Private limited companies sign financial management contracts with individuals. When the contract expires, the company is unable to repay its debts. What responsibility will the legal person have? Is this fraud? Is your private enterprise a personal company?

The Company Law provides as follows:

Article 64 If the shareholders of a one-person limited liability company cannot prove that the company's property is independent of the shareholders' own property, they shall be jointly and severally liable for the company's debts.

Because of the singleness of its shareholders, a one-person limited liability company lacks the internal mutual restraint of other non-one-person limited liability companies, so it is easy to produce the phenomenon that the company's property and shareholders mess up. While confirming the legitimacy of a one-person limited liability company, the new Company Law aims to prevent shareholders from abusing the company's independent legal personality and combine the company's property with their own hodgepodge to achieve illegal purposes. In particular, this article gives the shareholders of a one-person limited liability company the obligation to prove that the company's property is independent of their own property. If the shareholders cannot prove this effectively, they shall be jointly and severally liable for all the debts of the company, that is, they shall bear the obligation to pay off the debts of the company with all their own property.