Is the company's business illegal and the equity transfer legal?

Legal analysis: legal, as long as it meets the conditions of equity transfer. Equity transfer agreement is a contract with equity transfer as its content, and equity transfer is the performance of debts under the contract. The effective time of the equity transfer agreement is inconsistent with the effective time of the equity transfer, and the equity transfer takes effect after the agreement takes effect. The main content of the equity transfer agreement is the transfer of equity, and its essence is to dispose of all its equity. Article 35 of the Company Law restricts the transfer of shares to people other than shareholders, and restricts the disposition of shares by shareholders.

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.