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company liquidation in China

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  • company liquidation in China

    How to close down a limited company in order to start up the same business under a new entity without resolving the liabilities of the former one??

    Thanks

  • #2
    Re: company liquidation in China

    For liquidation of the limited company in China, a liquidation committee shall be formed within 15 days when the company goes into liquidation. This liquidation committee shall be responsible for the liquidation of the company and will prepare the liquidation plan. If the company assets are unable to satisfy creditors then company or creditors can file for bankruptcy. Earlier, when the company was being closed down a new business could be established. However, now Supreme Court has established the new provisions providing about the obligations and liability of the liquidators in case of liquidation. In case the shareholders or directors fail to fulfill the duties required of liquidation then they may be liable for joint liability. If the shareholders fail to form the liquidation committee and in the meantime assets are destroyed or damaged then the shareholders may be liable.

    AFF

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    • #3
      Re: company liquidation in China

      ...indeed creditors can try to come after the new business if they feel the entire transaction was done to defraud creditors and for no other legitimate reason.

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