The Company Law is the basic law of China's company system, which has detailed provisions on the basic organizational form, operating mechanism and shareholders' rights and obligations. When establishing a limited liability company, the number of shareholders should comply with the law, otherwise it will affect the legitimacy and normal operation of the company. According to Article 34 of the Company Law, the number of shareholders of a limited liability company is more than 1 person and no more than 50, all of whom are natural persons or other legally established enterprise legal persons. That is to say, under the laws of our country, the number of shareholders should be at least 1 and at most 50. In addition, the number of shareholders also needs to comply with other relevant laws and regulations. For example, the Law of People's Republic of China (PRC) on Enterprises with Foreign Investment stipulates the number of shareholders of enterprises with foreign investment. Generally, the number of shareholders of a foreign-invested enterprise shall not exceed 25, but there may be exceptions. Controlling the number of shareholders according to law is helpful to maintain the legitimacy of the company, reduce risks, protect the rights and interests among shareholders and the stable operation of the company.
What if there are more than 50 shareholders in a limited liability company? A limited liability company with more than 50 shareholders shall be changed into a joint stock limited company according to law. Article 39 of the Company Law stipulates that a joint stock limited company shall be established to raise shares by issuing shares, and its shareholders shall not be less than 25; A listed joint stock limited company shall have no fewer than 200 shareholders.
Limited liability company is an important part of China's enterprise system, and its number of shareholders should comply with the law to avoid illegal situations. Controlling the number of shareholders according to law is helpful to maintain the legitimacy of the company, reduce risks, protect the rights and interests among shareholders and the stable operation of the company.
Legal basis:
Article 34 of the Company Law of People's Republic of China (PRC) The number of shareholders of a limited liability company is more than 1 person and no more than 50, all of whom are natural persons or other legally established enterprise legal persons.