The difference between sponsors and shareholders

Legal analysis: According to the provisions of the Company Law of People's Republic of China (PRC) on shareholders and promoters, the difference between shareholders and promoters is that the promoters are the people who set up the company at the beginning of the company's establishment, that is, the people who initiated the establishment of the company, which are called promoters. Shareholders are the people who bear the responsibility to the extent of capital contribution after the establishment of the company, so the promoters are also shareholders after the establishment of the company, and the newly added shareholders after the establishment of the company are also shareholders, but not promoters.

Legal basis: Article 79 of the Company Law of People's Republic of China (PRC). The promoters of a joint stock limited company shall undertake the preparatory work of the company. The promoters shall sign a promoter agreement to clarify their respective rights and obligations during the establishment of the company.

Article 3 of the Company Law of People's Republic of China (PRC) 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 4 of the Company Law of People's Republic of China (PRC) * * * The shareholders of the company shall enjoy the rights of earning assets, participating in major decisions and selecting managers according to law.