(2) The limit on the number of shareholders of a limited liability company includes both the initial shareholders who participate in the establishment of the company and the new shareholders who are added after the establishment of the company due to new capital contribution, capital contribution transfer, company merger and other reasons, that is, the total number of shareholders cannot exceed the maximum limit. The requirement for the minimum number of shareholders does not include the requirement for wholly state-owned companies, because the law has special provisions for wholly state-owned companies.
Legal basis: Article 16 of the Company Law of People's Republic of China (PRC) stipulates that if a company invests in other enterprises or provides guarantees for others, it shall be decided by the board of directors or the general meeting of shareholders in accordance with the provisions of the articles of association; Where the articles of association stipulate limits on the total amount of investment or guarantee and the amount of individual investment or guarantee, it shall not exceed the prescribed limits. Where a company provides a guarantee for the company's shareholders or actual controllers, it must be resolved by the shareholders' meeting or the shareholders' meeting. Shareholders specified in the preceding paragraph or shareholders controlled by actual controllers specified in the preceding paragraph shall not participate in voting on matters specified in the preceding paragraph. The voting shall be passed by more than half of the voting rights held by other shareholders present at the meeting.