Foreign Investment Company – De-registration and Obligations of Members when Liquidation

Company Law, Article 190 stipulates: liquidation committee shall be devoted to carry out its obligations when liquidation.

Liquidation committee shall not use their power to charge something or to receive other illegal income, as it may seize property of the company.

Liquidation committee cannot for the reasons of willful misconduct or gross negligence, cause damage to the company or the creditors, it shall be liable for compensation.

"Supreme People's Court on the application of the" Company Law "Provisions on Several Issues (two)," the first paragraph of Article 23: the liquidation committee members when engaging in clearing transactions, conducts illegal acts, or violate administrative regulations or the articles of association which cause the company or the creditors losses, the company or the creditors can claim their liability, the people's court shall act in accordance with the law.

In addition to civil liability, he has to bear administrative responsibility or which may be more serious or even has to undertake criminal liability.