Shareholder responsibilities in bankruptcies under new Company Law

The new Company Law, effective from 1 July 2024, has significantly impacted commercial entities, with shareholder responsibilities regarding capital contributions capturing the most attention. This article examines the duties of shareholders in companies that have entered bankruptcy liquidation or reorganisation under the new law, clarifying the boundaries of their responsibilities.

Capital contribution responsibilities

Accelerating shareholders’ capital contribution benefiting all creditors. Article 35 of the Enterprise Bankruptcy Law stipulates scenarios where shareholder’s capital contributions may be accelerated in the context…