Analysis of the system for enforcing supplementary liability of shareholders with defective capital contributions
YANG Jiong
LI Hui
Abstract：Based on considerations of efficiency and fairness,Articles 17-19 of the"Provisions of the Supreme People's Court on Several Issues Concerning the Change and Addition of Parties in Civil Enforcement"grant creditors the right to add shareholders with defective capital contributions in the enforcement procedure to bear supplementary liability for the debts unpaid by the company(the person subject to enforcement).Meanwhile,Article 32 provides for litigation as a remedy.This has led to the formation of a procedural model of"addition by ruling+litigation for objection"in the system of enforcing supplementary liability of shareholders with defective capital contributions.However,judicial practice has shown that this model not only evolves into a"three-tier trial system"but may also result in an excessively high"case-to-file ratio".Both legal theory and practical effectiveness indicate that the preliminary procedure of"addition by ruling"is a significant factor contributing to the unsatisfactory operation of the system.In order to further optimize the supplementary liability system for shareholders with defective capital contributions,and better implement the supplementary compensation liability of defective shareholders,the current system of objection against additional persons subject to enforcement into a litigation should be reformed,and a mechanism for applying for implementing person's permission litigation that is in line with China's enforcement procedure framework should be established.
Keywords：additional enforcementshareholders with defective capital contributionssupplementary liabilitylitigation for permission to enforce
Publication Date：2025-05-15
Pages：9( 9-16,53 )