On June 15, 2020, S&G represented a case about adding shareholders who withdraw contribution capital as additional parties subject to enforcement, and this is the second hearing of the case.

The values in this case were 12 million yuan. The judgement debtor has not gone through liquidation procedures and it is unable to find the actual controllers and shareholders. Hence, the creditor's rights have not been fully implemented.

After we had accessed to the business registration information, it disclosed that the debtor company had an increased registered capital of 20 million yuan. It can be found from the balance sheet of the annual business inspection information that there were huge amounts of money in "other receivables" account. Therefore, it is suspected that the shareholders of the company may illegally take away the registered capital.

A survey conducted by the bank during enforcement procedure revealed that the increased capital of 20 million yuan was withdrawn on the next day.

According to Article 18 of the Provisions of the Supreme People’s Court on Several Issue Concerning the Modification and Addition of Parties in Civil Enforcement, Where an enterprise legal person becomes a person subject to enforcement and it is unable to pay off the debts which are determined in a valid legal instrument with its own property. The enforcement applicant may apply for changing and adding a shareholder or contributor withdrawing contribution as persons subject to enforcement and impose liability on them within the scope of contribution withdrawn, and the People's Court shall support the claims.

Given the above-mentioned regulations, we applied the two shareholders withdrawing contribution as persons subject to enforcement. At present, the additional application review has been held for the second time.