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What happens when the enterprise’s owners or members fail to fully contribute the amount of promised capital or the shareholders fail to fully buy all of registered shares within the time limit? What is their responsibility for the enterprise operations determined in this case?

For a Multiple-member Limited Liability Company:

    • The member who fails to contribute the capital amount as promised will naturally no longer be a member of the company;
    • The member who fails to fully contribute the capital amount as promised will have the rights in proportion to the paid capital amount;
    • The unpaid capital amount of a member shall be offered for sale pursuant to a resolution or decision of the Members’ Council.
    • The company shall register the adjustment of the charter capital and capital contribution ratios of the members according to the contributed capital within 30 days from the final date that the capital was required to have been fully contributed.
    • Members who fail to contribute capital or fail to fully contribute capital as promised will be liable for, within the scope of their promised capital amounts, the financial obligations of the company arising before the date the company registers the adjustment of charter capital and members’ contributed capital.

For a Single-member Limited Liability Company:

    • The owner of the company shall register the adjustment of charter capital to equal the actual contributed capital amount within 30 days from the final date that the capital was required to have been fully contributed.
    • The owner shall be liable for, within the scope of the promised capital amounts, the financial obligations of the company arising before the date the company registers the adjustment of charter capital.

For a Joint Stock Company:

    • A shareholder who has not paid for the registered shares shall naturally no longer be a shareholder of the company and is not allowed to transfer such share purchase rights to another.
    • A shareholder who has partially paid for the registered shares may have the voting rights, receive profits and have other rights in proportion to the number of paid shares; and will not allowed to transfer the purchase rights regarding the unpaid shares to another.
    • The unpaid shares shall be considered unsold shares and the Board of Directors has the right to sell such shares.
    • The company shall register the adjustment of charter capital as the total par value of shares which have been fully paid for and the change of founding shareholders within 30 days from the final date the registered shares were required to have been fully paid.
    • Shareholders who have not paid or have partially paid for the registered shares will be liable for, within the scope of the total par value of the registered shares, the financial obligations of the company arising during the period of share purchase as prescribed by law.

For a Partnership:

    • A general partner who fails to contribute capital in full and on time as promised, causing damage to the partnership, shall compensate the partnership for the damages.
    • If a limited partner fails to contribute the promised capital amount in full and on time, the deficit amount shall be regarded as a debt owed by that partner to the partnership; in this case, the limited partner concerned may be excluded from the partnership pursuant to a decision of the Members’ Council.

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Emotional intelligence plays a key role in conflict resolution. People with strong analytical skills often tend to focus on the logical and right-wrong aspects of an issue, which is not the most effective approach for conflict resolution. Emotional intelligence is necessary to maintain self-control and avoid getting stuck in a right-wrong mindset. Knowing when to stay silent is also an important aspect of emotional intelligence in order to achieve a satisfactory outcome for all parties involved.

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Litigation, a term derived from the Latin word “litigare,” meaning “to dispute,” is the process of taking legal action through courts to enforce or defend a legal right. It involves a series of steps, from the initial filing of a lawsuit to the final resolution, often through a court trial or settlement. This legal mechanism is fundamental in maintaining the rule of law, resolving disputes, and ensuring justice in society.

The litigation process typically begins when one party, known as the plaintiff, files a complaint against another party, the defendant. This complaint outlines the plaintiff’s allegations and the legal basis for the lawsuit. The defendant is then served with a summons and a copy of the complaint, providing formal notice of the legal action.

1. Pleadings: The initial phase of litigation involves pleadings, where both parties submit written statements. The plaintiff files a complaint, and the defendant responds with an answer, which may include counterclaims against the plaintiff. This exchange of documents establishes the issues in dispute and the positions of each party.

2. Discovery: Discovery is a critical phase where both parties gather evidence to support their claims and defenses. This process includes depositions, interrogatories, requests for documents, and admissions. Discovery ensures that both parties have access to relevant information, promoting transparency and fairness in the litigation process.

3. Pre-Trial Motions: Before the trial, parties may file various motions to resolve specific issues or potentially dismiss the case. Common pre-trial motions include motions to dismiss, motions for summary judgment, and motions to compel discovery. These motions aim to streamline the trial by addressing legal and procedural matters in advance.

4. Trial: If the case proceeds to trial, both parties present their evidence and arguments before a judge or jury. The trial involves opening statements, witness examinations, cross-examinations, and closing arguments. The judge or jury then deliberates and renders a verdict, determining the outcome of the case.

5. Post-Trial Motions and Appeals: After the trial, the losing party may file post-trial motions, such as a motion for a new trial or a motion for judgment notwithstanding the verdict. If these motions are denied, the losing party can appeal the decision to a higher court. The appellate court reviews the trial record and determines whether legal errors were made that could have affected the outcome.

Types of Litigation

Litigation encompasses various types of legal disputes, each with unique characteristics and procedures:

1. Civil Litigation: Civil litigation involves disputes between individuals, businesses, or organizations seeking monetary damages or specific performance. Common examples include contract disputes, personal injury claims, and property disputes. The burden of proof in civil cases is typically “preponderance of the evidence,” meaning that one party’s case must be more convincing than the other’s.

2. Criminal Litigation: Criminal litigation involves the prosecution of individuals or entities accused of violating criminal laws. The government, represented by a prosecutor, brings charges against the defendant. The burden of proof in criminal cases is “beyond a reasonable doubt,” a higher standard than in civil cases, reflecting the serious consequences of criminal convictions.

3. Administrative Litigation: Administrative litigation occurs when individuals or entities challenge the decisions or actions of government agencies. These cases often involve regulatory compliance, licensing, and enforcement actions. Administrative hearings are typically less formal than court trials, with specific procedures and rules governing the process.

The Role of Attorneys in Litigation

Attorneys play a crucial role in the litigation process, representing the interests of their clients and navigating the complexities of the legal system.

They provide legal advice, draft pleadings and motions, conduct discovery, negotiate settlements, and advocate for their clients in court. Effective litigation requires a deep understanding of substantive and procedural law, strategic thinking, and strong advocacy skills.

Conclusion

Litigation is a cornerstone of the legal system, providing a structured process for resolving disputes and upholding the rule of law. While it can be lengthy, costly, and adversarial, litigation remains an essential mechanism for achieving justice and accountability.

Understanding the stages, types, and roles involved in litigation is vital for anyone navigating the legal landscape, whether as a plaintiff, defendant, or legal professional.

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I am old-school when it comes
to learning. I love traditional books (paper books) because they connect me to the words on the page. I often purchase and make a habit of daily reading, and this is the only way I feel happy after a hard day of work. Books are good friends that brighten my spirit and transport me to my own world.

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