1. The frozen shares shall not be transferred, and the company shall not handle the transfer procedures of the frozen shares;
2. The company shall not pay dividends or bonuses to the person subjected to execution.
The people's court shall not freeze the equity of the person subjected to execution for more than three years. If the people's court fails to go through the renewal formalities at the expiration of the period, the equity will be unfrozen.
First of all, is the equity freeze good or bad?
In order to prevent improper loss of equity income, the people's court restricts the equity owner from withdrawing or transferring equity through compulsory measures. The quality of stock right freezing depends on different situations.
(1) If there is a problem with the company's shareholding structure, the company may face bankruptcy, so the shareholding freeze is beneficial. The freezing of shares can safeguard the interests of shareholders or other aspects of the company, keep the interests relatively stable and achieve the purpose of property preservation;
(2) If the company faces cash flow difficulties, but needs cash flow for business expansion, it cannot handle equity pledge financing business when the equity is frozen. The freezing of shares means that there are some problems in the internal cash flow of the company. Frozen shares cannot be used as pledge funds to enrich the company's blood, which will have a bad influence:
(3) If banks or third-party lending institutions do not agree to the loan application because of the equity freeze, it will also have a negative impact. In addition, the freezing of shares does not deny the qualifications of shareholders, nor does it restrict shareholders from exercising their rights and interests such as voting, participation, voting and being elected, and the right to know. In addition, there is a time limit for freezing shares. The people's court shall not freeze the bank deposits and other funds of the person subjected to execution for more than six months, seal up or detain movable property for more than one year, and seal up immovable property and freeze other property rights for more than two years.
Second, is it useful for a company to have no listed equity?
Equity is a shareholder of a limited liability company or a joint stock limited company. The comprehensive rights of personal rights and property rights enjoyed by a company by fulfilling its capital contribution obligations. That is to say, equity is the shareholder's qualification based on the performance of capital contribution obligations, and then enjoys the right to obtain economic benefits from the company and participate in the company's management.
In the company law, the rights of shareholders in a limited liability company use equity, and a joint-stock limited liability company uses shares.
Equity property right is the right of shareholders to enjoy income based on their own capital contribution. For example, the right to share dividends, the right to distribute property when the company is dissolved, and the preemptive right when other shareholders do not agree to transfer their capital contribution. This is the right that shareholders exercise for their own interests.
Personal rights of stock rights refer to the rights enjoyed by shareholders to participate in the company's operation and management based on their own capital contributions, such as voting rights, supervision rights, shareholders' meeting claims, and the right to consult accounting statements. This is the right that shareholders exercise for the benefit of the company and also for their own benefit.
If the company is not listed, the company's equity also has the dual attributes of property rights and personal rights, which can bring income rights and management rights. Therefore, although the company's non-listing makes it difficult to sell the company's equity quickly, it cannot be said that it is useless.
Third, how to dilute the equity of technology stocks when increasing capital and shares.
Capital increase and share expansion means that an enterprise raises shares from the society, issues shares, and new shareholders invest in shares or original shareholders increase capital and share expansion, thus increasing enterprise capital. Generally speaking, there are two ways to dilute equity: capital increase and equity transfer.
For the founder, the dilution of equity means the reduction of the proportion of voting rights, but whether the value of equity holdings before and after dilution is reduced depends on whether the company's price is underestimated before and after dilution and the company's price changes again. Frankly speaking, the release of glue right is due to the decrease of earnings per share caused by the increase of PUC common stock, and the dilution of equity mainly exists in companies whose equity structure has been re-examined. Professionals pointed out that the best situation of equity dilution is to achieve a win-win situation for shareholders and enterprises. However, if this process is not handled properly, as the dilution continues, entrepreneurs will gradually get out of control and may eventually be eliminated.
Legal basis:
Provisions of the Supreme People's Court on Several Issues Concerning the Implementation of the People's Courts
Article 38 The people's court may take measures to freeze the investment right or equity of the person subjected to execution in a limited liability company or other legal person enterprise.
Where the investment rights and interests or equity are frozen, the relevant enterprises shall be notified not to handle the transfer procedures of the frozen investment rights and interests or equity, and not to pay dividends or bonuses to the person subjected to execution. The person subjected to execution may not transfer the frozen investment right or equity by himself.