Does the proxy shareholder have the right to handle the equity?

The proxy shareholder has no right to dispose of the equity. The proxy shareholder is a nominal shareholder and has no right to dispose of the equity. If a third person transfers without knowing it at a reasonable price and goes through the formalities of change registration, the transferee obtains the equity. If the controlling shareholder wants to get rid of the responsibility completely, he should transfer his equity to the actual controller or the third person designated by him. Go to the administrative department for industry and commerce to register the change of shareholders.

Equity holding, also known as entrusted shareholding, anonymous investment or false name investment, refers to a kind of equity or share disposal method in which the actual investor agrees with others to perform shareholders' rights and obligations on behalf of the actual investor in the name of the other person.

What are the legal risks of holding shares on behalf of others?

1. The validity of the equity holding agreement was denied.

Even if the shareholding agreement can prove that there is a shareholding relationship between the actual investor and the nominal investor, when the shareholding agreement violates the mandatory provisions of laws and administrative regulations, it will still be considered invalid.

2. Do not recognize the identity of shareholders.

The agency shareholding relationship should be formed on the basis of the entrustment relationship and is a legal act of both parties. It requires both parties to have the same intention of establishing entrustment relationship, signing entrustment contract or agency shareholding agreement. If there is no contract but both parties have factual behavior, it can also be determined that there is an agency shareholding relationship according to law, and the civil rights and obligations of both parties can be determined through this legal relationship.

3. Equity is punished.

When a significant shareholder becomes an executor because he can't pay off the due debts, his creditors have the right to apply to the people's court for compulsory enforcement of the equity according to the ownership of the equity recorded in the industrial and commercial registration.

4. Nominal shareholder risk

In the absence of sufficient evidence to prove the shareholding relationship, the nominal shareholder shall bear the supplementary liability for compensation when the actual investor fails to perform the investment obligation.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 3 1 1

If the person who has no right to dispose of the realty or chattel transfers it to the assignee, the owner has the right to take it back; Unless otherwise provided by law, in any of the following circumstances, the transferee obtains the ownership of real estate or chattel:

The transferee is in good faith when accepting real estate or movable property;

(2) Transfer at a reasonable price;

(3) The transferred immovable property or movable property that should be registered according to law has been registered, and the transferred immovable property or movable property that does not need to be registered has been delivered to the transferee.

If the transferee obtains the ownership of real estate or movable property in accordance with the provisions of the preceding paragraph, the original owner has the right to claim damages from the unauthorized person. Where the parties have acquired other real rights in good faith, the provisions of the preceding two paragraphs shall apply mutatis mutandis.