Private enterprises refer to profit-making economic organizations established by or controlled by natural persons and based on wage labor. Including private limited liability companies, private joint-stock companies, private partnerships and private enterprises registered in accordance with the Company Law, the Partnership Law and the Provisional Regulations on Private Enterprises.
State-owned enterprises refer to wholly state-owned enterprises, wholly state-owned companies and state-owned capital holding companies that the State Council and local people's governments perform the responsibilities of investors on behalf of the state respectively. State-owned enterprises have ownership or control over their capital, and the will and interests of the government determine the behavior of state-owned enterprises. Example: Shanghai Nokia Bell Co., Ltd.
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In essence, a company limited by shares is just a special limited liability company. 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 joint stock limited company has overcome this drawback, and can attract a large number of investors, especially small investors, by decomposing the registered capital of the whole company into small-value stocks.
The registered capital of a joint stock limited company is all composed of equal shares, the capital is raised by issuing shares, and the company is an enterprise legal person with limited liability for the company's debts with all its assets.
Its main features are: the total capital of the company is divided into equal shares; Shareholders shall bear limited liability to the company with their subscribed shares, and the company shall bear liability for the company's debts with all its assets; One vote per share, shareholders enjoy rights and assume obligations with their shares.
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