Unlimited liability company (unlimited liability company)
A company form consisting of two or more shareholders who are jointly and severally liable for the debts of the company. Also known as unlimited company. For the most typical man-made company. It must be composed of two or more shareholders, and the shareholders must be natural persons. Shareholders are jointly and severally liable for the company's debts, that is, shareholders must use the property contributed by them and other property as the guarantee for paying off the company's debts. When all the company's property is insufficient to pay off the company's debts, the creditors have the right to ask the shareholders of the company to pay off the outstanding part with their personal property, and the debts between the shareholders are joint and several liability. Shareholders who repay the company's debts beyond their share have the right to recover from other shareholders of the company, so that these shareholders become new creditors.
trait
Unlimited liability companies are a few enterprises based on mutual trust among members. Its characteristics are as follows: (1) the organizational procedure is relatively simple and does not require the minimum total capital; Whether the company operates well or not is directly related to all the property interests of each shareholder; Therefore, the shareholders' meeting works together and the shareholders are closely related; The company has high credibility and strong competitiveness. However, shareholders' investment risks are high, their responsibilities are heavy, their capital contribution is difficult, and there are strict restrictions on the transfer of capital contribution, which is not conducive to protecting the interests of investors.