Should a one-person company and its shareholder be joint defendants?
Company A sued Company B for a dispute over the sales contract and applied to add Company B’s shareholder, Company C, as a joint defendant. Company C defended that Company A had abused its right of prosecution, because the dispute between Company A and Company B had no business with Company C. Article 63 of the “Company Law” stipulates that, “A shareholder of a one-person limited liability company who is unable to prove that the company’s assets are independent of the shareholder’s personal assets shall bear joint and several liability for the company’s debt.” In addition, Article 20 of the…