A: 1. The degree of shareholders' control over the company. In a joint stock limited company, due to the small, scattered and highly liberalized shares, most shareholders are keen on stock trading and lose their enthusiasm for participating in company management. Therefore, shareholders' control over a joint stock limited company is often indirect or even diluted. Limited liability companies have a small range of shareholders, and based on mutual trust, shareholders have little freedom in capital contribution transfer. Therefore, shareholders generally actively participate in the operation and management of the company, recall directors through the shareholders' meeting, and control the board of directors through the shareholders' meeting, thus achieving effective control over the company. 2. Simplification of organizational structure. The law has many detailed mandatory provisions on the institutional arrangement of corporate governance structure to protect the rights and interests of shareholders. Limited liability companies are relatively small in scale, and shareholders are willing to actively exercise their beneficial rights and make full use of their management rights. Therefore, the provisions of the law on the governance structure of limited liability companies are more flexible and relaxed, leaving shareholders with more autonomy space.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.