Limited liability means that shareholders are liable to the company to the extent of their capital contribution, and the company is liable to the debts of the company with all its assets.
Unlimited liability means that the shareholders of a company pay off the company's debts not only with their capital contribution, but also with their personal property other than their capital contribution.
The difference between the two: the difference between limited joint liability and unlimited joint liability lies in limited joint liability, that is, taking part of all property as joint liability. Unlimited joint and several liability refers to the joint and several liability with all the property, that is, as much liability as there is property.
The biggest difference is the different ways of shareholders' commitment.
Compared with limited liability companies (including limited companies and joint stock limited companies), limited liability means that shareholders are liable to the company to the extent of their capital contribution, and the company is liable to the company's debts with all its assets.
Unlimited liability means that the shareholders of a company pay off the company's debts not only with their capital contribution, but also with their personal property other than their capital contribution.
Legal basis:
Article 30 of the Company Law of People's Republic of China (PRC). After the establishment of a limited liability company, it is found that the actual price of non-monetary property contributed by the company is obviously lower than the amount stipulated in the company's articles of association, and the shareholders who contributed shall make up the difference. When the company is established, other shareholders shall bear joint and several liabilities.
Derivative problem:
What are the characteristics of China Company?
According to China's company law, companies are divided into limited liability companies and joint stock companies. Whether it is a limited company or a joint-stock company, their biggest feature is that shareholders' responsibility to the company is limited and limited by their capital contribution. That is to say, when the company's assets are insufficient to repay the debts owed, shareholders do not have to bear joint and several liability for repayment, that is, they do not need to pay debts for the company.