Option C. Unlimited liability with personal property

Article 2 of the "Sole Proprietorship Law" stipulates:

"The so-called sole proprietorship in this law shall It refers to an operating entity established in China in accordance with this law, invested by a natural person, the property is owned by the investor personally, and the investor bears unlimited liability for the debts of the enterprise with his personal property."

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A case of investor liability for corporate debts:

Cai invested in and established a hardware factory in Caitang Town, Chaoan County in 1995, and registered the factory as a sole proprietorship with the industrial and commercial department. . Since 2004, the hardware factory has repeatedly entrusted Liu with the stainless steel product polishing business.

As of January 2009, the hardware factory *** owed Liu more than RMB 490,000 for polishing processing. Liu came to the door many times to demand payment, but Cai always used various excuses and never paid. Repay the above processing payment.

In desperation, Liu filed a lawsuit with the People's Court of Chao'an County in March 2009, requesting that the hardware factory be ordered to pay back the processing fee and overdue payment liquidated damages, and asked Cai to repay the hardware factory for the above-mentioned damages. Debts bear the responsibility for supplementary repayment. During the trial of the case, Cai had no objection to the fact that the processing payment was owed, but he believed that the processing payment was owed by the factory, and the factory's property should be used to pay off the debt. He did not have to bear personal responsibility. The plaintiff Liu's lawsuit against him should be dismissed. turn down.

The case passed the first instance of Chao'an County People's Court and the second instance of Chaozhou Intermediate People's Court. The final verdict was that the hardware factory should repay Liu's processing fee of RMB 496,074 and pay the amount within ten days from the date when the judgment became legally effective. Liquidated damages for overdue payment (calculation method: from March 10, 2009 to the date when the judgment confirms repayment, calculated based on the interest rate of the People's Bank of China for similar overdue loans in the same period); Cai paid the hardware factory for the insufficient part of the debt in this case assume liability for repayment.

If the monetary payment obligation is not performed within the period specified in this judgment, double payment for the period of delayed performance shall be made in accordance with the provisions of Article 229 of the Civil Procedure Law of the People's Republic of China. Debt interest. The first and second instance case acceptance fees shall be borne by the hardware factory.

Laws and Regulations Database - Sole Proprietorship Law of the People's Republic of China