How to distribute the equity of a company?

Legal analysis: distribution according to the proportion of capital contribution. When a company distributes its equity, it can generally distribute it in proportion to its capital contribution. In other words, if the partners make different contributions and have different proportions, they can distribute the equity according to the amount of their contributions. Those who contribute more account for more interests, while those who contribute less account for less interests. This is also the most common way of equity distribution, and it is also more reasonable. Distribution according to the size of contribution. When a company distributes its equity, it can generally distribute it according to its capital contribution. What is the contribution? Refers to the shareholder's contribution to the company. Generally speaking, those who contribute a lot can distribute more shares, and those who contribute a little can distribute less shares. This is also normal. Distribution according to shareholder status. When a company distributes its equity, it can generally distribute it according to the status of shareholders. The positions held by shareholders in the company are generally set and allocated according to certain principles, and generally the more important positions are held by core shareholders. Therefore, in order to better allocate equity, we can allocate equity according to the position of shareholders. Allocate according to the contract. When a company distributes its equity, it can generally distribute it according to the contract. What is a contractual agreement? It means that when we do business together, we will definitely sign a partnership agreement. This is also to avoid future interest disputes, so when signing a cooperation agreement, you can think clearly, clearly stipulate the shareholding ratio, and act according to the contract. It can't be wrong.

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

Article 42 At the shareholders' meeting, shareholders shall exercise their voting rights in proportion to their capital contribution; However, unless otherwise stipulated in the articles of association.

Article 43 The discussion methods and voting procedures of the shareholders' meeting shall be stipulated in the articles of association of the company, unless otherwise stipulated in this Law.

The shareholders' meeting shall make resolutions on amending the Articles of Association, increasing or decreasing the registered capital, and on the merger, division, dissolution or change of corporate form of the company, which must be approved by shareholders representing more than two thirds of the voting rights.

Article 71 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.