Legal basis: Article 3 of the Company Law of People's Republic of China (PRC) Limited liability companies and joint stock limited companies are enterprise legal persons.
In a limited liability company, shareholders are liable to the company to the extent of their capital contribution, and the company is liable to its debts with all its assets.
In a joint stock limited company, all its capital is divided into equal shares, shareholders are liable to the company to the extent of their shares, and the company is liable to the company's debts with all its assets.