Why do enterprises want to transfer equity?

At present, for enterprises in the market, due to the needs of business development, they may encounter "equity transfer". The so-called "equity transfer" refers to a civil legal act in which shareholders of a company transfer their rights and interests to others for compensation according to law, so that others can obtain equity. So, why do companies want to transfer equity? Next, this article will give a concrete answer to this question!

Generally speaking, there are many possibilities for enterprises to transfer equity. For example, the purpose of equity transfer in some companies is to improve the financial structure and increase the income of current shareholders;

Some companies want to transfer investment risks through equity transfer because of business problems and important shareholders quit; There are also some companies that transfer their shares because they need funds, and they want to get some funds through equity transfer to solve their urgent needs.

At present, there are two main ways of equity transfer, namely, internal transfer and external transfer. Among them, internal transfer means that shareholders can transfer all or part of their shares to each other. External transfer means that shareholders transfer all or part of their shares to a person who is not a shareholder of the company.

Usually, internal transfer only needs the consent of both parties. Foreign transfer requires the consent of more than half of other shareholders, who have the preemptive right.

Benefits of equity transfer

Mainly in the following three aspects:

1, the need to protect the interests of shareholders.

Equity transfer can reflect the company's democracy and fairness, and at the same time, it can also give minority shareholders corresponding rights to deal with the possible abuse of power or infringement by major shareholders.

2. The need to maintain good management and operation of the company.

The purpose of the company is to make a profit. The principle of company capital is a legal principle that must be followed in the whole process of company establishment, operation and management, and equity transfer is also to better maintain the good operation of the company.

3. It is conducive to the stability of the company's own funds.

The realization of shareholders' interests is the ultimate goal and core content of equity. For shareholders, if transferring shares can get more benefits than continuing to hold shares, the law should respect the rational choice of this "economic man". Therefore, from this perspective, equity transfer is conducive to the stability of the company's own capital.