Company merger refers to the merger of two or more companies into one company through concluding contracts and legal procedures. The merger between companies can enhance the competitiveness of the original companies, expand the scale of production and operation, and promote the development of socialized mass production.

The merger of companies requires at least two companies. There are different types of companies, so there is a question of whether the company law restricts the types of merged companies. There are two attitudes in legislation and theory.

(1) The company type is not limited. That is, not only the same kind of companies, such as limited liability companies and limited liability companies, can be merged; Different types of companies, such as limited liability companies and joint stock limited companies, can also be merged.

② Corporate restrictionism. Most countries adopt this attitude in legislation, and there are two different approaches;

One is to limit the types of companies before the merger, that is, limited liability companies or joint stock limited companies merge with other similar companies;

Second, limit the types of companies after the merger, that is, all kinds of companies can merge with each other, but if one or both of the merged companies are joint stock limited companies, then the companies that survive after the merger or the companies newly established due to the merger must be joint stock limited companies. The Company Law does not clearly stipulate whether there are various restrictions on the merger of companies, but it stipulates the merger and division of companies in a special chapter, which is different from the original Standard Opinions on Joint Stock Limited Companies and Opinions on Limited Liability Companies. This shows that China's company law adopts the principle of unlimited company types.

Company division refers to the division of a company into two or more companies according to legal procedures. Company division mainly adopts two ways:

(1) A company separates part of its property or business and establishes one or more new companies. The original company continues to exist, that is, it is separated.

(2) The company distributes all its property to two or more newly established companies, and the property of the original company is redistributed according to the nature, purpose and business scope of each newly established company. When the original company is dissolved, the newly established company is divided.

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