Conditions for the establishment of joint-stock companies

Legal analysis: the conditions for the establishment of a joint stock limited company. 1. The promoters are legally qualified and have a quorum. The qualification of promoters refers to the qualification obtained by 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 five, but it shall be established by way of offering. .

Legal basis: People's Republic of China (PRC) Company Law.

Article 77 A joint stock limited company may be established by means of initiation or offering. A promoter refers to a company established by the promoters who subscribe for all the shares that should be issued by the company. The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.

Article 78 To establish a joint stock limited company, there shall be two or more promoters, more than half of whom shall have their domicile in China.

Article 79 The promoters of a joint stock limited company shall undertake the preparatory work of the company. The promoters shall sign a promoter agreement to clarify their respective rights and obligations during the establishment of the company.

Article 80 Where a joint stock limited company is established by means of sponsorship, the registered capital shall be the total share capital subscribed by all sponsors registered at the company registration authority. Before the shares subscribed by the promoters have been paid in full, they may not raise them from others. Where a joint stock limited company is established by offering, the registered capital shall be the total paid-in share capital registered with the company registration authority. Where laws, administrative regulations and decisions of the State Council have other provisions on the paid-in amount of registered capital and the minimum amount of registered capital, those provisions shall prevail.