Change company form

Legal analysis: Answering legal analysis: The change of corporate form refers to the legal behavior and procedure of changing the organizational form of a company into another type of company without interrupting the legal person qualification of the company. The change of company form, also known as company organization change, is an important system of company law, which is stipulated in most countries.

Legal basis: Article 100 of the Company Law of People's Republic of China (PRC) stipulates that a limited liability company shall be changed into a joint stock limited company. Attention should also be paid to the following issues:

1. Converting net assets into shares. The company's assets include its liabilities. Therefore, when a limited liability company is approved to be changed into a joint stock limited company according to law, the converted shares are equal to the company's net assets.

2 state-owned assets into shares, in line with the same shares and rights, to prevent the loss of state-owned assets. When a state-owned enterprise is transformed into a joint stock limited company, it is strictly forbidden to convert state-owned assets into shares at a low price, sell them at a low price or distribute them to individuals free of charge.