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.
superiority
(1) Unlimited company has the characteristics of partnership, simple organization, small legal minimum number, close relationship between shareholders and high mutual trust. No minimum capital is required, no shares are issued to the outside world, and the company's external relations are simple.
(2) Infinite company is beneficial to the combination of wealth and talents, that is, it is beneficial to the combination of people with more wealth and less wisdom and people with less wealth and more wisdom to form a company with good operating results.
(3) The shareholders of an unlimited company are jointly and severally liable, and their capital contributions cannot be transferred at will. Therefore, shareholders are highly motivated and have a strong sense of responsibility. They work hard and help each other in the same boat.
(4) Because the unlimited company bears joint and several liabilities, the company has a high degree of credit, and the economic interests of creditors can be guaranteed.
disadvantaged
(1) Shareholders are too risky. Once the company goes bankrupt, due to unlimited joint liability, shareholders are likely to lose everything.
(2) It is difficult to raise capital, because the number of shareholders in the company is limited, and it is allowed to contribute with wisdom or credit, and the minimum capital is not required. Without the cooperation of shareholders with strong financial resources, financing is more difficult.
(3) Difficulties in equity transfer. Since the shareholders of an unlimited company are jointly and severally liable, who to cooperate with is a matter involving the vital interests of every shareholder. Shareholders who want to transfer their share capital must obtain the consent of all shareholders. Therefore, it is difficult to transfer the share capital of unlimited company.