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Ask HN: Founders in China personally liable to pay back investors?

2 pointsby cwxmabout 5 years ago
Hi,<p>My father has a startup in China. Apparently there startup founders often take investments for which if the startup fails, the founder is personally liable to pay back investors, even if it was started as an LLC (or whatever the chinese equivalent is).<p>It seems like he is now worried, because the startup is not doing so well, and the investment he took outstrips what personal assets he has.<p>Does anyone with experience such contracts have recommendation into what recourse he has?

1 comment

billconanabout 5 years ago
yes I have heard of that.