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How does the debt reduction company operate?
Legal analysis: through financing. Debt reduction by financing refers to raising funds to pay off debts through capital increase and share expansion, issuing stocks or bonds and other financing methods. First, indebted enterprises can attract new shareholders, including venture capitalists and multinational investment banks, to expand their share capital to finance and pay off debts.

Legal basis: Article 176 of the Criminal Law of People's Republic of China (PRC) illegally absorbs public deposits or absorbs public deposits in disguised form, thus disrupting the financial order, he shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined not less than 50,000 yuan but not more than 500,000 yuan.

If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.