Advantages of individuals as shareholders:
1, higher flexibility: as a shareholder, personal decision-making is more flexible, and it can make decisions faster and adapt to changes in the market;
2. Tax preference: In some areas or circumstances, dividend income from personal investment may enjoy more tax preference;
3. Low investment threshold: individuals can participate in the investment of enterprises at a lower cost by buying a small amount of stocks.
Disadvantages of individuals as shareholders:
1, high risk: personal investment risk is high, and investment failure may cause greater financial losses;
2. Not conducive to financing: the contribution of personal investment to enterprise financing is relatively small, and it is difficult to provide large financial support for enterprises;
3. Irregular management: As a shareholder, irregular management may affect the long-term development of the enterprise.
Advantages of the company as a shareholder:
1. Sufficient funds: As a shareholder, the company can provide more financial support for the enterprise, which is convenient for the enterprise to expand its scale and develop its business;
2. Standardized management: As a shareholder, the company can better protect the rights and interests of shareholders and improve the stability and development of the company;
3. Low investment risk: The investment risk of the company is relatively low, which can be reduced by diversifying investment.
Disadvantages of the company as a shareholder:
4. Decision-making is relatively slow: as a shareholder, the company's decision-making is relatively slow and needs multi-party consultation and approval, which is not as flexible as individual decision-making;
5. Limited investment fields: As a shareholder, a company is usually limited to its investment fields, and there is no flexible investment threshold for individuals.
Individuals as shareholders need to meet the following conditions:
1. Have certain investment ability: As a shareholder, individuals need to have certain investment funds, be able to buy shares of the company and bear corresponding risks;
2. Have risk awareness and management ability: As shareholders, individuals need to have certain risk awareness and risk management ability, be able to make rational investment decisions and bear corresponding risks;
3. Have a certain industry and market awareness: As a shareholder, individuals need to have a certain understanding and cognition of the industry and market they invest in and be able to make wise investment decisions;
4. Have a good reputation and social reputation: individuals as shareholders need to have a good reputation and social reputation, and must not have criminal records or other bad economic and social records;
5. Possession of legal identity and qualification: As a shareholder, an individual needs to be a legal natural person, and must not be a person deprived of or limited in civil capacity.
To sum up, if quick decision-making and flexible investment are needed, individuals may be more suitable to be shareholders; If more financial support and management norms are needed, the company may have more advantages as a shareholder.
Legal basis:
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.
Article 103
Shareholders attending the shareholders' meeting shall have one vote for each share they hold. However, the shares of the company held by the company have no voting rights. The resolution of the shareholders' meeting must be passed by more than half of the voting rights held by the shareholders present at the meeting. However, the resolutions of the shareholders' meeting to amend the Articles of Association, increase or decrease the registered capital, and the resolutions of the company's merger, division, dissolution or change of corporate form must be adopted by more than two thirds of the voting rights held by the shareholders present at the meeting.