A joint stock limited company generally refers to a limited liability company, which refers to an economic organization registered according to law with less than 50 shareholders. Each shareholder shall bear limited liability to the company to the extent of the capital contribution subscribed by him, and the company shall bear full liability for the company's debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies. Limited liability company (limited company for short) is the most important organizational form for state-owned enterprises to implement corporate system. The internal organization of the company is flexible.
Article 2 of People's Republic of China (PRC) Company Law
? The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law.
Article 3 of People's Republic of China (PRC) Company Law
? The company is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property.
? Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.