What is the role of equity in Hong Kong companies?

Company limited by shares and company limited by guarantee

Joint stock limited company is the most common form of trading company or commercial company. The share capital of such companies is divided into several shares, each of which has a certain value. company

Some or even all of the shares are held by investors. Investors are shareholders of the company. If the company is prosperous and profitable, it will hold shares in proportion to its shareholding.

Pay dividends to investors. If the company loses money, the investor's loss is at most the total loss of the amount invested in the company's stock. In other words, voting.

The investor's responsibility is limited to the value of the shares.

Company shares are usually paid in full at the time of issuance. However, the issued shares are sometimes only partially paid, and shareholders who have not paid in full must

Responsible.

The form of guarantee company is often used to set up clubs, societies, schools, charities and so on.

The liability of the members of the company is limited to the amount of capital contribution they bear when the company is liquidated. When the company was established, the members

You don't need to contribute, you just need to promise to share a certain amount when the company liquidates. In fact, the amount promised is negligible, such as 100 yuan.

A company limited by guarantee may also have share capital to take care of the situation that the company needs funds for its daily operation.

Or it may be necessary to distribute dividends among companies. However, this kind of company limited by guarantee is not common in Hong Kong.

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