Free transfer of shares

Legal analysis: the free transfer of equity refers to the behavior that shareholders do not need the transferee to pay the equity consideration when transferring equity. The company's equity transfer can be transferred to external investors or internal shareholders. If the equity is transferred to an external investor for free, the consent of the internal shareholders of the company is required. Under the same conditions, internal shareholders have limited purchasing power, and it is difficult for internal shareholders to agree to the free transfer of equity. Without the consent of the company's shareholders, it is easy for internal shareholders to exercise the right of revocation, which leads to the cancellation of the transfer. In addition, the free transfer of equity will also lead to tax problems of the transferee, and the transferee needs to pay personal income tax according to the actual value of equity. The tax rate is 20%. Therefore, the legal problems and legal risks of free transfer of equity are relatively large, so I suggest you handle them with caution.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 467 Paragraph 1 The provisions of the General Provisions of this Part shall apply to contracts that are not expressly stipulated in this Law or other laws, and the provisions of the most similar contracts in this Part or other laws may be applied by reference.

Article 646 Where the law provides for other paid contracts, such provisions shall prevail; If there are no provisions, refer to the relevant provisions of the applicable sales contract.