In the company law, there is a very special system, that is, the system of denying corporate personality. So what is the noun explanation of the system of corporate personality denial? The denial of corporate personality is aimed at those who abuse the shareholders of the company. Here, I will introduce you to more corporate personality denial systems, hoping to help you. I. Explanation of terms of corporate personality denial system The corporate personality denial system refers to a liability investigation system in which shareholders of a company abuse their independent status as a legal person and limited liability to evade debts, that is, they lose their legally enjoyed right to bear limited liability for corporate debts only to the extent of their capital contribution, but should bear joint liability for corporate debts.

However, the system of denying corporate personality is not a denial of corporate system, on the contrary, it is a supplement and sublimation of corporate system. It is precisely because of the company personality denial system that the fairness, rationality and justice of the company system can be proved and defended. Because the system of denying corporate personality is used by legal persons, it deviates from the original intention of giving corporate personality by law, that is, fairness, equality and justice, which is controlled and manipulated by others and no longer has independence. The law will ignore the independent personality of the legal person and hold the manipulator behind the legal person accountable.

Therefore, the reversion from corporate personality confirmation to corporate personality denial caused by this kind of corporate personality denial is not a denial of the whole corporate system, on the contrary, it is a strict adherence to corporate personality. The legal person denied by the system of denying legal person's personality is actually an empty shell of a legal person that has been controlled and lost its personality independence, so the system effectively maintains the healthy development of the legal person system and prevents the deviation and alienation of the value goal of the legal person system.

Second, the legal consequences of the company personality denial system. The confirmation of the company personality denial system in China's company law is mainly reflected in the provisions of Article 20, paragraphs 1 and 3 of the law. Paragraph 1 of Article 20 of the Company Law stipulates: "Shareholders of a company shall abide by laws, administrative regulations and articles of association, exercise their rights according to law, and shall not abuse their rights to harm the interests of the company or other shareholders; The company's independent legal person status and the limited liability of shareholders shall not be abused to harm the interests of the company's creditors. " Paragraph 3 of Article 20 stipulates: "If a company's shareholders abuse its independent status as a legal person and its limited liability to evade debts, which seriously damages the interests of the company's creditors, they shall be jointly and severally liable for the company's debts."

Iii. Applicable conditions of the system of denying corporate personality 1. The corporate has obtained legal personality according to law;

2. The company's personality is abused;

3. Abuse of corporate personality infringes on the legitimate interests of creditors or social public interests;

This is a case of denial of legal personality.

The above is the detailed knowledge about the terminology interpretation of the system of denying corporate personality. In a limited company, the liability of shareholders is limited, but if shareholders abuse the rights of the company, the system of denying corporate personality can be applied.