The establishment of limited liability system and its promotion to the development of the company

It is generally believed that the limited liability system originated in Britain in the19th century and was established by the British Limited Liability Act of 1855. Subsequently, many countries established the limited liability system through company legislation. For example, the Limited Liability Company Law passed by Germany in 1892 and the Limited Liability Company Law promulgated by France, Japan and other countries later marked the development and perfection of the company system. The core essence of these laws is that investors should bear corresponding responsibilities within the limits of their invested capital. The first Company Law of China was promulgated on February 29th, 1993/kloc-0, which changed with the development of social economy. Later, it was revised five times in 1999, 2004, 2005, 20 13 and 20 18 respectively.

Up to now, there are more than 30 million registered legal person enterprises in China. If the company is the core cell of the market economy, then the limited liability system is the booster for the company to take off. Limited liability system is the product of social and economic development and plays an important role in the development of modern companies. It overcomes the personal bankruptcy risk brought by the bankruptcy of shareholders of unlimited companies, stimulates people to invest actively, facilitates extensive fund raising, and greatly promotes the development of large companies. Butler, a famous American company law scholar and then president of Columbia University, gave a wonderful speech entitled "Politics and Economy" at the annual dinner of 19 1 new york Chamber of Commerce 143, and spoke highly of the company and the limited liability system. He put it this way: "Limited liability company is the greatest unique invention in modern society, and it is better in terms of its social, ethical, industrial and political effects." Even steam engines and electric power are far inferior to the heavy equipment of limited liability companies. Not only that, if there were no limited liability companies, steam engines and electricity would become weak. "It can be said that the advanced system design itself can be transformed into productive forces.