The difference between joint-stock system and limited responsibility system

Legal analysis: Limited liability company and joint stock limited company are two types of companies in China's law, both of which are independent enterprise legal persons, with independent legal personality and full responsibility. The difference between the two is that a limited company has a strong human nature, and its shareholders bear limited liability to the extent of their capital contribution, while a joint-stock company whose capital is not divided into equal shares has a strong capital nature, and its shareholders bear liability to the extent of the shares subscribed, and its capital must be presented in the form of shares.

Legal basis: Article 3 of People's Republic of China (PRC) Company Law 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, and shareholders of a limited liability company shall be liable to the company to the extent of their subscribed shares. Article 9 When a limited liability company is changed into a joint stock limited company, it shall meet the requirements of a joint stock limited company as stipulated in this Law. When a joint stock limited company is changed into a limited liability company, it shall meet the conditions of a limited liability company as stipulated in this Law. Where a limited liability company is changed into a joint stock limited company, or a joint stock limited company is changed into a limited liability company, the creditor's rights and debts before the company change shall be inherited by the changed company.