In modern business society, corporations are separate legal entities with their own assets and liabilities. However, when a company faces financial difficulties or even owes money, creditors often seek legal avenues to protect their rights and interests. At this time, people will have a question, that is, whether the company's arrears can be enforced against the property of the legal representativeLet's take a look.
The company's arrears can be enforced against the property of the legal representative?
The company owes money and cannot enforce the property of the legal representative. Because only the company is obliged to bear the company's debts, the legal representative is not liable for the company's debts.
Even if the legal representative is a shareholder, he is liable for the company's debts only to the extent of the amount of capital contribution or the shares of the company he holds, and it is not possible to enforce the property of the legal representative to repay the company's debts.
However, if the company's arrears are caused by the legal representative's intention or gross negligence, the legal representative shall be liable for repaying the company's arrears, and the legal representative's property can be enforced at this time.
Article 3 of the Company Law.
The company is an enterprise legal person, has independent legal person property, and enjoys the property rights of legal person. The company is liable for the debts of the company with all its property.
The shareholders of a limited liability company are liable to the company to the extent of their subscribed capital contributions;Shareholders of shares*** are liable to the company to the extent of their subscribed shares.
How to recover the company's arrears
1.The creditor can negotiate with the debtor.
2.The creditor may apply to the people's court for a payment order.
3.The creditor can entrust a collection company to collect the money.
4.The creditor may apply to the arbitration commission for arbitration.
5.The creditor may entrust a lawyer to file a civil lawsuit with the people's court.
To sum up, under normal circumstances, the company's arrears will not directly enforce the property of the legal representative. This is because the company, as a separate legal entity, has its own financial responsibilities and obligations. Therefore, in order to protect their rights and interests and reduce risks, creditors should fully understand and evaluate the company's financial position when dealing with the company. At the same time, companies should also strengthen financial management and standardize operations to avoid unnecessary legal disputes and economic losses.