A limited liability company is the most common form of business company in Hong Kong. Such a company has a share capital, which is divided into several shares of a certain value each.
Some or all of the shares are owned by investors who are known as company shareholders.
If a company prospers and makes good profits, it will distribute dividends among shareholders in accordance with their shareholdings. If a company incurs losses, shareholders will lose all their investments in the company's shares. The obligations of shareholders are limited by the value of the shares.