What are the advantages and disadvantages of joint-stock enterprises?

Advantages: it has the responsibility of taking risks, the ownership income of joint-stock enterprises is scattered, and the operating risks are shared by many shareholders; With a strong dynamic mechanism, many shareholders care about the operation of enterprise assets from the perspective of interests, which makes the major decisions of enterprises tend to be optimized and the development of enterprises can be based on the interest mechanism; Due to the law, a limited liability company can only have less than 50 shareholders, which limits the company's ability to raise funds. However, the company limited by shares overcame this drawback.

Disadvantages: the company's establishment procedures are strict and complicated, the company is large in scale and the membership structure is complex; The company's equity is scattered, and each shareholder only accounts for a very small part of the company's total capital. Although shareholders have partial ownership of the company, it is irrelevant to the vast majority of minority shareholders, and shareholders are very unstable. The company's shares are scattered and there are many people, but as long as you master a certain proportion of shares, you can control the lifeline of the company. Therefore, the company's board of directors can easily harm the interests of many minority shareholders.

Extended data:

The functions and powers of the shareholders' meeting mainly include: hearing and deliberating the reports of the board of directors, the board of supervisors and auditors; To be responsible for the appointment and removal of directors, supervisors or auditors and liquidators; To decide the distribution of company surplus and dividend; Conclude, modify or terminate contracts for transferring or leasing the company's business or property and accepting other people's business or property; To make resolutions on the Company's increase or decrease of capital, amendment of the Articles of Association, dissolution or merger.

The functions and powers of the board of directors mainly include: expressing opinions or making decisions on various business matters on behalf of the company, and organizing the implementation and enforcement of these decisions; Except the matters decided by the shareholders' meeting, the specific matters in the daily business activities of the company shall be decided by the board of directors.

The functions and powers of the board of supervisors mainly include: attending board meetings as nonvoting delegates, supervising the activities of the board of directors, listening to the reports of the board of directors regularly and at any time, and preventing the board of directors from violating laws and articles of association; Investigate the business and financial status of the company at any time, and consult account books and other documents; Review the settlement statement and liquidation report at the time of liquidation of the company; Convene a general meeting of shareholders; Handling or suing directors on behalf of the company.

References:

Joint-stock enterprise-Baidu Encyclopedia