Gazette Case: Ying Gaofeng v. Jiameide (Shanghai) Trading Co., Ltd. and Chen Huimei
In veil-piercing litigation involving a one-person company, when the creditor relies on shareholder-company asset commingling, the shareholder bears the burden of proving separation. Whether commingling exists should be assessed through the independence of the financial system, clarity of payments, and operational independence; if the shareholder carries that burden, joint liability should not be imposed automatically.
Holding
In veil-piercing litigation involving a one-person company, when the creditor relies on shareholder-company asset commingling, the shareholder bears the burden of proving separation. Whether commingling exists should be assessed through the independence of the financial system, clarity of payments, and operational independence; if the shareholder carries that burden, joint liability should not be imposed automatically.