What are the advantages of a company limited by shares?
1 has a wide range of shareholders.
Limited liability companies raise funds by issuing shares to the public. Any investor can become a shareholder of a limited company as long as he subscribes for shares and pays for them.
2. The investment mode is stock system.
In a joint-stock company, the capital contribution of shareholders is shares. This function is one of the differences between a joint-stock limited liability company and a limited liability company. The total capital of a joint-stock limited liability company is divided into equal shares, and shares are the smallest unit of the company's capital.
3. Limited liability of shareholders.
The shareholders of a joint stock limited company are only liable for the debts of the company for the shares they subscribe for, and the creditors of the company may not directly ask the shareholders of the company to repay the debts.
4. Share exposure and freedom.
The openness and freedom of shares include the issuance and transfer of shares. Joint-stock companies usually raise funds publicly by issuing shares. This method of raising funds has increased the number of shareholders and spread widely. At the same time, in order to improve the financing ability of stocks and attract investors, stocks must have high liquidity and can be freely transferred and traded.
5. Openness of the company.
The operating conditions of a joint stock limited company should be disclosed not only to shareholders, but also to the society. Let the public know about the company's operating conditions, which is also one of the differences with limited liability companies.
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