Limited companies and unlisted joint-stock companies provide guarantees to the related parties of major shareholders.

Article 16 of the Company Law stipulates: "The company's investment in other enterprises or providing guarantee for others shall be decided by the board of directors or the shareholders' meeting in accordance with the company's articles of association. "

Legal provisions are general provisions and requirements for social affairs, which are universal. However, it is often difficult for the law to summarize all the phenomena in economic life, which requires us to analyze and identify them in detail in combination with social practice.

Especially for joint stock limited companies, the requirements will be stricter, and foreign investment and guarantee matters must be discussed and approved by the shareholders' meeting; For a limited liability company, the major shareholder is often in an absolute controlling position, and the will of the major shareholder is often reflected in the will of the company. Some of them were put into practice with official seals without discussion by the board of directors and shareholders' meeting. It is impossible and unnecessary to treat limited liability companies strictly.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.