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Due to the economic downturn, some companies have to dissolve and liquidate. However, there are many risks during the dissolution and liquidation if the company failed to handle the procedure properly. In particular, the Company Law revised in 2023 (hereinafter referred to as the “New Company Law”) has amended or added provisions regarding liquidation, which deserves attention. This article sorts out the relevant risks with the main focus on the subject of liability assumption during the liquidation of a limited liability company. Legal Risks Related to Liquidation Obligors The original Company Law did not specify the definition or scope of…

Company A did not take out the work-related injury insurance for its employees, but instead it took out a group accident insurance. Sun got injured at work. After Sun received the claim payment from the insurance company, he sued the company, demanding for the work-related injury insurance benefits. Company A defended that Sun had already received the claim payment from the insurance company, he should not be entitled to double compensation. However, both the court of first-instance and the court of second-instance supported Sun’s claim. Company B did not take out the work-related injury insurance for its employees, but instead…

In foreign-funded enterprises and private enterprises, the top-3 common duty-related crimes are: the crime of job-related embezzlement, the crime of accepting bribes by non-state functionaries, and the crime of misappropriating funds. The standards for the completion of these crimes usually involve the actual acquisition or control of property, etc. However, during the process of disposing of the illicit money and goods, the perpetrator may carry out other acts to conceal the illegal gains. That is, in relation to the upstream crime of the duty-related crime, there are also downstream criminal acts. The general theory in criminal law holds that the…

The company agreed with Zhou that his monthly salary would be CNY4,000, including overtime pay. After Zhou resigned, he filed for labor arbitration, demanding that the company pay him overtime pay. The company admitted that there was overtime work but argued that the agreed monthly salary already included overtime pay. The arbitration commission ruled that the company should pay the difference in overtime pay. This case was one of the typical labor and personnel dispute cases released by the Supreme People’s Court in 2022. Some enterprises agree with their employees on a fixed salary amount which includes fixed normal working…

The “Commercial Defamation” normally refers to an operator discredits its competitor’s business reputation, damages its competitor’s competitive advantages, seizes competitive opportunities, and disrupts the fair competition market environment, by fabricating false information or other means. However, it is very difficult to determine whether an operator constitutes commercial defamation. Therefore, it is necessary for us to have a thorough understanding of the constituent elements and common types of commercial defamation. Article 11 of the “Anti-Unfair Competition Law” stipulates that, “Operators shall not fabricate or disseminate false or misleading information that damages the business reputation and product reputation of competitors”. Article 20…