Gazette Case: Extended Contribution Deadlines Cannot Defeat Creditors

Gazette Case: Wang Qinjie v. Shanghai Licheng Investment Management Co., Ltd. et al.

Once company debts have already arisen, shareholders cannot rely on later charter amendments or resolutions extending contribution deadlines against existing creditors. If the company cannot pay due debts, under-contributing shareholders remain liable within the scope of their unpaid contributions.

Holding

Once company debts have already arisen, shareholders cannot rely on later charter amendments or resolutions extending contribution deadlines against existing creditors. If the company cannot pay due debts, under-contributing shareholders remain liable within the scope of their unpaid contributions.

Issues

extension of contribution deadlines after company debts arosecreditor protectionaccelerated contribution