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What happens if the company doesn't use it or cancels it?
1. If the company has not been cancelled and its legal personality has not been eliminated, shareholders, as liquidation obligors, need to participate in civil litigation activities on behalf of the company during the liquidation period;
2. The liquidation group has the obligation of liquidation and cancellation, and if losses are caused to creditors due to failure to go through cancellation registration, it shall bear corresponding responsibilities.
Cancellation: refers to the cancellation of the subject qualification of an enterprise that meets the statutory conditions after applying to the original registration authority and going through liquidation procedures according to regulations. The company disappeared completely, the legal person qualification was terminated according to law, all employees were dismissed, all the bank's money was recovered, and all the creditor's rights and debts were terminated. Cancellation is a legal act and the final and only result of the company's suspension of business.
People's Republic of China (PRC) Civil Code
Article 68
If one of the following reasons and liquidation and cancellation of registration are completed according to law, the legal person shall be terminated:
(1) The legal person is dissolved.
(2) The legal person is declared bankrupt;
(3) Other reasons prescribed by law.
Where laws and administrative regulations stipulate that the termination of a legal person shall be approved by the relevant authorities, such provisions shall prevail. Article 69
A legal person shall be dissolved in any of the following circumstances:
(1) The time limit stipulated in the articles of association of the legal person expires or other reasons for dissolution stipulated in the articles of association of the legal person arise;
(2) The corporate body is dissolved by resolution;
(3) It needs to be dissolved due to the merger or division of a legal person;
(4) The legal person has its business license and registration certificate revoked according to law, and is ordered to close down or be revoked;
(5) Other circumstances stipulated by law.
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