What are the legal consequences of a shareholder’s withdrawal of capital?
A shareholder who withdraws capital shall, within the principal and interest of the withdrawn capital, bear supplementary compensatory liability for the portion of the company’s debts that cannot be satisfied; other shareholders, directors, senior management, or actual controllers who assisted the withdrawal bear joint and several liability. The company registration authority may impose a fine, and, where the circumstances are serious, criminal liability may be implicated.
