Can a limited liability company issue preferred shares?

Preferred stock, relative to common stock, takes precedence over common stock in some aspects according to relevant regulations. According to the current laws and regulations, limited liability companies cannot issue preferred shares, and only joint stock limited companies can issue preferred shares, which are limited to the following three categories:

Relevant listed companies that meet the requirements stipulated by the China Securities Regulatory Commission may publicly issue preferred shares;

2. All listed companies and specific unlisted public companies can issue preferred shares in a private way;

3. In the market-oriented bank debt-to-equity swap, unlisted non-public joint-stock companies approved by the inter-ministerial joint meeting to actively and steadily reduce the leverage ratio of enterprises can issue outstanding shares according to the submitted plan.

legal ground

The Guiding Opinions of the State Council on Piloting Preferred Shares stipulates that the issuers of public preferred shares are limited to listed companies designated by the China Securities Regulatory Commission, and the issuers of non-public preferred shares are limited to listed companies (including overseas listed companies registered in China) and unlisted public companies.