What is a closed company?

A closed-end company is a private company that does not issue shares for listing. All the shares of a closed company are held by the shareholders who set up the company, and the shares of a closed company cannot be freely transferred, traded or circulated in the securities market, but can only be issued to a specific range of shareholders; The characteristic is that the company's shares can only be issued to a specific range of shareholders, but not to the public on the stock exchange. The company is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property.

legal ground

Article 3 of the Company Law of People's Republic of China (PRC): The definition of a company and the responsibilities of shareholders. A company is an enterprise legal person with independent legal person property and legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.