Local governments cannot be shareholders. Government investment is generally carried out as a shareholder through the State-owned Assets Management Committee. The government is not a natural person, the township government is a state organ, and the staff are all on the job. According to the law, national civil servants cannot engage in commercial activities, let alone register companies. According to the status of shareholders, it can be divided into institutional shareholders and individual shareholders. Institutional shareholders refer to legal persons and other organizations that enjoy shareholder rights. Institutional shareholders include all kinds of companies, all kinds of enterprises owned by the whole people and collectively, all kinds of non-profit legal persons and funds and other institutions and organizations. Individual shareholders refer to ordinary natural person shareholders.
legal ground
Article 15 of the Company Law: The reinvested company may invest in other enterprises; However, unless otherwise provided by law, investors shall not be jointly and severally liable for the debts of the invested enterprises.
Article 105 of the "Regulations on Disciplinary Actions" If the party and state organs run enterprises through business in violation of relevant regulations, the principal responsible person and other directly responsible personnel shall be given a warning or a serious warning; If the circumstances are serious, he shall be dismissed from his post within the party.
Article 25 of Judicial Interpretation III of Company Law: The actual investor of a limited liability company enters into a contract with the nominal investor, stipulating that the actual investor will contribute and enjoy the investment rights and interests, and the nominal investor will be the nominal shareholder. If there is a dispute between the actual investor and the nominal shareholder on the validity of the contract, and there is no situation stipulated in Article 52 of the Contract Law, the people's court shall consider the contract valid.