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What Are The Similarities And Differences Between Limited Liability Companies And Limited By Share Ltd?

2011/6/20 10:43:00 42

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What are the similarities and differences between the limited liability company and the Limited by Share Ltd?

A: limited liability company and Limited by Share Ltd are two main forms of a company. They have their similarities and differences.

Limited liability company and Limited by Share Ltd

Common ground

Yes,

(1) shareholders are limited to the company.

Whether in a limited liability company or in a Limited by Share Ltd, shareholders are limited to the company. The scope of "limited liability" is limited by the amount of investment of shareholders.

(2) the property of a shareholder is separated from the property of a company. After the shareholder has invested his property in a company, the property constitutes the property of the company, and the shareholder no longer controls and controls the property directly.

At the same time, the company's assets and shareholders do not invest in other assets of the company is not related, even if the company appears insolvent, shareholders are only responsible for their investment in the company, no longer bear other responsibilities.

(3) both limited liability companies and Limited by Share Ltd are responsible for all assets of the company.

That is to say, the company has only limited liability to the outside world. The scope of "limited liability" is all the assets of the company. Besides that, the company no longer assumes other property responsibilities.

limited liability

The difference between the company and Limited by Share Ltd is:

(1) there are differences between the two companies in terms of establishment and fund-raising.

The conditions for the establishment of a limited liability company are relatively loose. The conditions for the establishment of the Limited by Share Ltd are relatively strict. The limited liability company can only raise funds by the sponsors, and can not publicly raise funds to the public. Limited by Share Ltd can raise funds publicly to the public. The number of shareholders of a limited liability company has the highest and minimum requirements, and the number of shareholders of Limited by Share Ltd is only the minimum requirement, without the highest requirement.

(2) the pfer of shares of the two companies is difficult.

In a limited liability company, there are strict requirements for shareholders to pfer their own capital contributions, and the restrictions are more and more difficult. In Limited by Share Ltd, shareholders pfer their shares freely, which is not as difficult as limited liability companies.

(3) there are different forms of stock certificates in the two companies.

In a limited liability company, the stockholder's equity certificate is a capital contribution certificate, and the capital contribution certificate can not be pferred or circulated. In the Limited by Share Ltd, the stockholder's equity is proved to be stock, that is, the shares held by shareholders are embodied in the form of shares. The stock is the certificate issued by the company to identify the shares held by the shareholders, and the shares can be pferred and circulated.

(4) the size of the shareholders' meeting and the authority of the board of directors and the two rights of the two companies.

Degree of separation

Different.

In a limited liability company, because the number of shareholders is relatively limited, the number of shareholders is relatively small, and the holding of shareholders' meetings is also more convenient. Therefore, the shareholders' committee has a larger authority. Directors are often held by shareholders themselves, and the degree of separation between ownership and management rights is relatively low. In Limited by Share Ltd, because shareholders have no upper limit, the number of shareholders is larger and dispersed, it is more difficult to convene shareholders' meetings, and the proceedings of shareholders' meetings are also complicated.

(5) the financial status of the two companies is different.

In a limited liability company, due to the limited number of companies, financial statements can not be audited by a certified public accountant, or they can not be announced. They are sent to shareholders only in accordance with the prescribed time limit. In Limited by Share Ltd, because of the large number of shareholders, it is difficult to classify them. Therefore, accounting statements must be audited by certified public accountants and issued by reports, and archived for shareholders to check.