Legal analysis: Generally speaking, an effective share donation agreement is the prerequisite for our employees to join the company. Shareholders of a company who change their shareholders and register with the Industrial and Commercial Bureau become full shareholders and fully enjoy the rights and obligations of shareholders. Performance shares are shares donated by joint-stock companies for free. Generally used as a reward for company sponsors; Sometimes it is also used to give away employees or attract some influential people. The share delivery must be approved by the board of directors, because it involves shareholders' rights and interests, which leads to the reduction of shareholders' rights and interests. If the donated dry shares exceed the paid-in capital of the company, diluted shares will be formed, which will reduce the stock price and earnings per share. If the company's retained earnings are converted into dry shares, it is equivalent to converting the retained earnings of shareholders' liabilities into company assets, which will reduce the equity per share and affect the stock market value.
Legal basis: Article 35 of the Company Law of People's Republic of China (PRC), shareholders receive dividends in proportion to their paid-in capital contribution; When the company increases its capital, shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution. Except that all shareholders agree not to pay dividends according to the proportion of capital contribution or not to subscribe for capital contribution in priority.