Shareholders' joint liability generally refers to the legal liability system in which shareholders abuse the independent status of corporate and limited liability of shareholders, evade debts and seriously damage the interests of creditors of the company, or shareholders bear joint liability with the company within a certain limit under the condition of insufficient capital contribution or withdrawal of capital contribution.

legal ground

Article 3 of People's Republic of China (PRC) Company Law

The company is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property.

Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.

Article 20

Shareholders of the company shall abide by laws, administrative regulations and the 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.

Shareholders of a company who abuse their rights and cause losses to the company or other shareholders shall be liable for compensation according to law.

Shareholders of a company who abuse the independent status of a company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of creditors of the company shall be jointly and severally liable for the debts of the company.