The risk of closing the company

A closed-end company is a private company that does not issue shares for listing. All the shares of a closed company are held by the shareholders who set up the company. The shares of closed-end companies cannot be freely transferred, traded or circulated in the securities market, and can only be issued to a specific range of shareholders.

legal ground

Article 3 of People's Republic of China (PRC) Company Law

The company 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; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.

Article 5 of the Company Law of People's Republic of China (PRC)

Companies engaged in business activities must abide by laws, administrative regulations, social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities. The legitimate rights and interests of the company are protected by law and shall not be infringed.