First, the advantages of joint-stock limited liability company
1, low risk
A joint-stock limited liability company can have up to 200 shareholders, which is relatively safer and can share the risks of individual investors.
It's easy to raise funds.
A joint stock limited company can obtain a lot of idle funds by issuing shares and listing, which is easy to form larger funds and is conducive to the company's growth.
3. Strong consistency.
Whether it is a major shareholder or a minor shareholder, the essence is to make money, so the goal is to make profits through the company, which is conducive to the optimization of the company's decision-making.
The organization of the company is perfect.
Generally speaking, a joint-stock limited liability company has a sound corporate governance mechanism and rules of procedure for the board of directors, the board of supervisors and the shareholders' meeting. The company takes directors and managers as the core management mechanism to manage the company's production and operation, and minority shareholders only receive company dividends and do not participate in the company's operation. Relatively speaking, the management of the company is more favorable.
Second, the shortcomings of joint-stock limited liability companies
1, complex settings
The establishment of a joint-stock limited liability company is relatively more complicated, with stricter procedures and higher requirements for various matters.
2. Poor flexibility
The scale of the company is relatively large, the number of departments and personnel in our company is relatively large, and the company's workflow and rules and regulations are also relatively complicated, so the flexibility of the company's decision-making and the company's work efficiency will be relatively low.
3. Decentralization of equity
Limited liability company's shares are scattered and can be transferred at will, which leads to the lack of cohesion and sense of responsibility of most minority shareholders, and it is easy for the company to change its leadership in many cases.
4. It is not conducive to the protection of small and medium investors.
There are many shareholders in a joint-stock company, and the share capital is scattered, but the decision-making principle of capital majority decision cannot be avoided, and there are also cases in which large shareholders manipulate and control the company to the detriment of minority shareholders.