liability company

Unlimited liability company
Unlimited liability company unlimited liability company
By two or more shareholders, shareholders shall bear unlimited joint and several liability for the debts of the company the company form. Also called the unlimited company. As the most typical personal company. Must be more than two composed of the shareholders, and the shareholders must be natural persons. The shareholders of the company debts of unlimited liability, namely shareholders must to investment property and investment property other than the property as a guarantee of payment of company debts, all of the company's property is insufficient to repay the company's debts, creditors shall have the right to the repayment of part company with his own property settlement,company formation and shareholder's liability is joint, to pay the debts in excess of his should undertake the amount of shareholders, have the right to recover from the other shareholders of the company, the shareholders, this part will become new creditors.
Characteristic
Unlimited liability company is built on mutual trust members based on a few small common form of enterprise, which is characterized in that: organizational procedures are relatively simple, are not required to have a minimum amount of capital; company management stand or fall, directly related to each shareholder property interest; so the shareholders will force management, shareholders are closely related; the company credit is high, competition ability strong. However, the shareholders investment risk, responsibility is heavy, capital is not easy to raise, investment transfer is strictly limited, not conducive to the protection of the interests of investors.
Unlimited company advantages
( 1) unlimited company with partner characteristics, structure is simple, the statutory minimum number of shareholders, the relationship between intimate, a high degree of mutual trust. Does not require a minimum of total capital, not foreign shares company of external relations, simple.
( 2) unlimited company is helpful for money only combined, solar wafer is conducive to more money less intelligent people with less wealth wisdom with others, jointly set up a company, obtain good management effect.
( 3) unlimited company shall bear unlimited joint and several liability, and shareholders can not transfer, therefore, shareholders to operate high enthusiasm, a strong sense of responsibility, mastermind with painstaking effort, to pull together in times of trouble.
( 4) as a result of an unlimited company jointly and severally, unlimited liability, so the company a high degree of credit, the economic interests can be guaranteed.