The so-called company reinvestment refers to the behavior that the company, as the main body of investment, uses the property of the company as the capital contribution to another enterprise, thus making the company a member of another enterprise.
Reinvestment inevitably involves the rights of reinvesting companies, especially the interests of creditors. If it is not restricted by law, it may damage the rights and interests of the company, especially the creditors. Therefore, when a company reinvests, it must not become a joint and several liability investor of the debt of the invested enterprise, that is, the company's investment in other enterprises must be based on the principle of limited liability and non-joint.
Extended information The companies mentioned in China's Company Law have their specific scope of application:
First, according to the principle of territoriality, it is a company established in China in accordance with the Company Law;
Secondly, the organizational form is limited to limited liability companies and joint stock limited companies, and the legislation does not stipulate the organizational form of other companies, so it is not allowed to be established in practice.
limited liability company
Concept: refers to an enterprise legal person established by all shareholders in accordance with the company law, and each shareholder is liable to the company within the limit of its capital contribution, and the company is liable to its debts with all its assets.
Features:
1) There are certain restrictions on the number of shareholders of a limited liability company, which must be less than 50;
2) Shareholders shall bear limited property liabilities to the Company to the extent of their capital contribution;
3) Limited liability companies do not publicly raise capital;
4) The scale of the company can be large or small, with strong adaptability;
5) The establishment procedure of the company is simple and the organization is flexible.
Conditions for establishment:
1) The number of shareholders meets the quorum;
2) Shareholders' capital contribution reaches the minimum statutory capital of 30,000 yuan;
3) Shareholders * * * jointly formulate the Articles of Association;
(4) Having a company name and establishing an organization meeting the requirements of a limited liability company;
5) Have a company residence.
Mode of contribution: monetary contribution; Contributions in kind; Intellectual property investment; Capital contribution of land use right.
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