What is the right to hold 40% shares?

Legal analysis: holding 40% of the company's shares is the major shareholder of the company. According to the internationally accepted company law, the voting rights enjoyed by shareholders are directly proportional to the number of shares they hold, and the more shares they hold or contribute, the greater the voting rights they enjoy. Legally, the will of the shareholders who hold the most shares at the shareholders' meeting is presumed to be the will of the company.

Legal basis: People's Republic of China (PRC) Company Law.

Article 20 Shareholders of a company shall abide by laws, administrative regulations and articles of association and exercise their rights according to law. Do not abuse their rights to harm the interests of the company or other shareholders, and do not abuse their independent legal person status and limited liability to harm the interests of the company's creditors. Shareholders of a company who abuse their rights and cause losses to the company or other shareholders shall be liable for compensation according to law. Shareholders of a company who abuse the independent status of a company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of creditors of the company shall be jointly and severally liable for the debts of the company.

Article 37 The shareholders' meeting shall exercise the following functions and powers: (1) To decide on the company's business policy and investment plan; (2) Electing and replacing directors and supervisors who are not employee representatives. Deciding on the remuneration of directors and supervisors (III) deliberating and approving the report of the board of directors (IV) deliberating and approving the report of the board of supervisors or supervisors (V) deliberating and approving the company's annual financial budget plan and final accounts plan (VI) deliberating and approving the company's profit distribution plan and loss compensation plan (VII) making resolutions on increasing or decreasing the registered capital of the company (VIII) making resolutions on issuing corporate bonds (IX) Company merger, division, dissolution and dissolution. Where the shareholders unanimously agree to the matters listed in the preceding paragraph in writing, they may make a decision directly without convening a general meeting of shareholders, and all shareholders shall sign and seal the decision document.