Under the new Company Law effective in 2024, where registered capital is reduced in violation of law, the shareholders shall return the funds they received, and any reduction or exemption of shareholders’ capital contributions shall be restored to its original state. If losses are caused to the company, the shareholders and the responsible directors, supervisors, and senior management personnel shall be liable for compensation.
What Are the Consequences and Liabilities for an Unlawful Capital Reduction?
Updated October 3, 2026
- Important notice: The information on this website is for general reference only and does not constitute legal advice. For specific issues, you should seek advice from a qualified lawyer. Contact our lawyers for professional assistance. https://legalidea.cloud
- Our lawyers have extensive legal experience and have handled a large number of complex and difficult legal matters for our clients, helping them meet challenges head-on.
Legal service
Professional Legal Services
Special Legal Counsel
Human resources / Corporate governance / Investment and financing / Equity incentives, and other complex legal matters
Dispute Resolution
Case assessment / Pre-litigation dispute resolution / Litigation / Arbitration
General Retainer Counsel
Flexible retainer plans for enterprises at every stage of development
Corporate Compliance
Learn more, contact us