Hereby, Can a Limited Liability Company with Two or More Members Issue Shares?
Clause 3 of Article 46 of the 2020 Enterprise Law (effective from January 1, 2021) stipulates:
A limited liability company with two or more members is not allowed to issue shares, except in cases of conversion to a joint-stock company.
Thus, similar to the current regulation, from January 1, 2021, a limited liability company with two or more members is not allowed to issue shares, except in cases of conversion to a joint-stock company.
However, it should be noted that while they are not allowed to issue shares, a limited liability company with two or more members is permitted to issue bonds in accordance with this Law and other relevant legal provisions; the issuance of private bonds must comply with the provisions of Articles 128 and 129 of this Law.
Sincerely!
