How to distribute equity when shareholders withdraw their shares at a loss

Legal analysis: There are two ways for shareholders to withdraw their shares. One is to transfer all his shares to other shareholders. First, in the case of company deadlock, if the company is required to acquire or transfer equity, it shall sign an equity transfer agreement and go through industrial and commercial registration after obtaining the consent of other shareholders and giving up the preemptive right. After the acquisition of equity, the company shall reduce its capital.

Legal basis: Article 71 of the Company Law of People's Republic of China (PRC). Shareholders of a limited liability company may transfer all or part of their shares to each other. Shareholders' transfer of equity to persons other than shareholders shall be approved by more than half of other shareholders. Shareholders shall notify other shareholders in writing to agree to the transfer of their shares. If other shareholders fail to reply within 30 days from the date of receiving the written notice, they shall be deemed to have agreed to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity; Do not buy, as agreed to transfer. Under the same conditions, other shareholders have the priority to purchase the equity transferred with the consent of shareholders. If two or more shareholders claim to exercise the preemptive right, their respective purchase proportions shall be determined through consultation; If negotiation fails, the preemptive right shall be exercised in accordance with their respective investment proportions at the time of transfer. Where there are other provisions on equity transfer in the articles of association, such provisions shall prevail.