The Applicable Scope of Company Law and Its Judicial Interpretation

Article 2 of the Company Law stipulates that "A company referred to in this Law refers to a limited liability company and a limited company established within the territory of China in accordance with this Law." Accordingly, the scope of application of the Company Law and its judicial interpretation is limited liability companies and limited companies established in accordance with the Law. Only enterprises are limited liability companies and limited companies can apply the Company Law and its judicial interpretation. Other forms of enterprises can not apply the Company Law and its judicial interpretation, but can only apply relevant ones. Laws and regulations.

For example, if an enterprise is a partnership, the Partnership Law should be applied, and the general partners should assume unlimited liability. The shareholders of a limited liability company and a joint stock limited company shall bear limited liability, that is, the shareholders of a limited liability company shall bear liability to the company within the limits of their subscribed capital contributions, and the shareholders of a joint stock limited company shall bear liability to the company within the limits of their subscribed shares.

Therefore, it is very important to understand the shape and nature of their own enterprises to prevent risks.

Author: Liangjun Ma, founding partner and lawyer of Shanghai G-road Law Firm

Statement:
This article was originally created by the lawyer of Shanghai G-road Law Firm and represents the author's own opinion. It should not be regarded as the formal legal opinions or suggestions issued by G-road Law Firm or its lawyers. If you need to reproduce or quote anything in this article, please indicate the source.