In real life, it happens from time to time that major shareholders occupy funds. When major shareholders occupy the company's funds in various ways, it may adversely affect the company's operations. In order to protect the interests of the company and investors, this article will focus on the harm of major shareholders occupying funds and countermeasures from the perspective of legal consequences.
1. The concept of capital occupation by major shareholders.
The occupation of funds by major shareholders refers to the situation in which major shareholders transfer the company's funds to their own names or the names of related parties through various means, resulting in the loss of the company's funds. This kind of behavior will not only affect the normal operation and development of the company, but also harm the interests of other shareholders and investors.
2. The legal consequences of the appropriation of funds by major shareholders.
1.Civil Liability.
It is illegal for a major shareholder to occupy funds, so the company can require it to bear the corresponding civil liability for compensation. According to the Company Law of the People's Republic of China and relevant laws and regulations, the major shareholder shall return the funds it occupies to the company and compensate for the losses caused to the company. If the majority shareholder does not have sufficient assets to settle the debt, the other shareholders can require it to bear the corresponding liability to the extent of the outstanding liquidation.
2.Administrative penalties and criminal liability.
The appropriation of funds by major shareholders may also violate administrative regulations and criminal laws. According to the provisions of the Company Law of the People's Republic of China and the Criminal Law of the People's Republic of China, if a major shareholder intentionally occupies the company's funds and the amount is relatively large or there are other serious circumstances, he may be investigated for criminal liability. In addition, the relevant authorities can also impose administrative penalties on major shareholders, such as fines, prohibitions on exercising voting rights, etc.
3. How to deal with the behavior of major shareholders occupying funds.
1.Strengthen the corporate governance structure.
In order to prevent the misappropriation of funds by major shareholders, the company should strengthen the governance structure and improve the internal control system. Specifically, the responsibilities and rights of the general meeting of shareholders, the board of directors, the board of supervisors and senior executives should be clarified, and a sound financial management system and internal audit system should be established to ensure the safety and legitimacy of the company's funds.
2.Take timely action.
Once it is discovered that the major shareholder has appropriated funds, the company shall take timely measures to prevent the loss from expanding. Measures that can be taken include recovering funds through legal means and reporting the case to the relevant authorities. At the same time, the company should also strengthen the disclosure of information to other shareholders and investors, so that they can keep abreast of the company's true situation.
3.Enhance investors' risk awareness.
Investors should be more risk-aware and cautious in their investments. When selecting investment targets, it is necessary to fully understand and analyze the company's governance structure and internal control system, so as to avoid investing in companies with greater risks. At the same time, in the process of investment, they should pay attention to protecting their legitimate rights and interests, and if they find that major shareholders are misappropriating funds, they can report to the relevant departments or seek legal assistance in a timely manner.
IV. Conclusions. The behavior of major shareholders to occupy funds will bring serious harm and losses to the company and investors. In order to prevent such behavior, the company should strengthen the governance structure and improve the internal control system, and take timely measures to deal with it. At the same time, investors should also enhance their risk awareness and invest prudently. While safeguarding the interests of the company and investors, it promotes the healthy development of the company and the stable growth of social economy.