To say an adult “cannot manage their own affairs,” apply to the court for a determination; a family member saying so does not count

In plain words

Whether an adult has “no civil capacity” or “limited civil capacity” can be decided only by a court. Family members, an employer or the residents' committee (居委会) can't decide on their own. An interested party or a relevant organization has to apply to the court. In the other direction, if intellectual or mental health recovers, an application can also be made for a determination that the person has regained capacity. This procedure is both a restriction and a protection.