Main Features
The company’s total capital is equally divided into shares of equal value; the company can issue shares to the public to raise funds, and the shares can be transferred in accordance with the law; the law has only a minimum number of shareholders, and there is no maximum amount; shareholders have limited liability for the company with the shares they subscribed , the company assumes responsibility for the company’s debts with all its assets; each share has one voting right, and shareholders enjoy the rights and undertake obligations with the shares they subscribe for; the company should disclose the accounting report that has been reviewed and verified by a certified public accountant.
Basic Features
(1) The joint stock limited company is an independent economic legal person;
(2) The number of shareholders of a joint stock company shall not be less than the number prescribed by law. For example, in France, the number of shareholders shall be at least 7;
(3) Shareholders of a joint stock limited liability company have limited liability for the debts of the company, the limit of which is the amount of shares payable by the shareholder;
(4) The entire capital of a joint stock limited company is divided into equal shares, and funds are raised through public issuance to the public. Anyone can become a shareholder of the company after paying for the shares, without qualification restrictions;
(5) The company’s shares can be freely transferred, but cannot be withdrawn;
(6) The company’s accounts must be disclosed to the public so that investors can understand the company’s situation and make choices;
(7) There are strict legal procedures for the establishment and dissolution of companies, and the procedures are complicated.
It can be seen from this that a joint stock limited company is a typical “owned joint venture company”. Whether a person can become a shareholder of the company depends on whether he has paid for shares and purchased shares, not on his personal relationship with other shareholders. Therefore, a joint stock company can quickly, widely and massively concentrate funds. At the same time, it can also be seen that although the capital of unlimited liability companies, limited liability companies, and partnership companies is also divided into shares, these companies do not issue shares publicly, and the shares cannot be freely transferred. They are all issued by joint stock companies. Therefore, in a narrow sense, joint stock companies refer to joint stock companies.
General Characteristics
1. Shareholders are extensive
A joint stock limited company raises capital by issuing shares widely to the public, and any investor can become a shareholder of a joint stock limited company as long as he subscribes for stock and pays for the shares.
2. The capital contribution has the nature of shares
In a joint-stock company, the capital contribution of shareholders has the nature of shares.
This characteristic is one of the differences between a corporation and a limited liability company. The entire capital of a joint stock limited company is divided into shares of equal value, and a share is the smallest unit that constitutes a company’s capital.
3. Limited Liability of Shareholders
Shareholders of a company limited by shares shall only be liable for the debts of the company to the extent of the shares they have subscribed to, and creditors of the company shall not directly demand repayment of debts from the shareholders of the company.
4. Publicity and freedom of shares
The openness and freedom of shares include the issuance and transfer of shares. Co., Ltd. usually raises capital publicly by issuing shares. This method of raising makes the number of shareholders large and widely dispersed. At the same time, in order to improve the financing ability of shares and attract investors, shares must have a high degree of liquidity, and shares must be freely transferable and tradeable.
5. The openness of the company
The operating status of a joint stock limited company must be disclosed not only to shareholders, but also to the public. It is also one of the differences from a limited liability company to allow the public to understand the company’s operating conditions.
