A company limited by shares refers to a company with shares as its capital, and shareholders are liable to the company to the extent of the shares subscribed by them. China's "Company Law" stipulates that the establishment of a joint stock limited company should have more than 2 promoters and less than 200 people.
Because all joint-stock companies must be limited liability companies (but not all limited companies are joint-stock companies), they are generally called "joint-stock companies".
Conditions for the establishment of a joint stock limited company:
The qualification of promoters of a joint stock limited company refers to the qualification of promoters to establish a joint stock limited company according to law. The promoters of a joint stock limited company may be natural persons or legal persons, but more than half of the promoters must have their domicile in China.
The establishment of a joint stock limited company must reach a quorum, with at least two promoters and at least 200 promoters. When a state-owned enterprise is transformed into a joint stock limited company, the number of promoters may be less than 5, but it shall be established by way of offering.
It is an international practice to set a minimum number of promoters for the establishment of a joint stock limited company. There is no minimum amount of sponsors. First, there are too few sponsors to fulfill their obligations. Second, a few sponsors are prevented from harming the legitimate rights and interests of other shareholders. There is no need to specify the maximum amount of sponsors.