Advantages and disadvantages of taking the company as a shareholder

Advantages and disadvantages of taking the company as a shareholder

With the advantages and disadvantages of the company's shareholding in the company, it is very common for the company to participate in the company. We know that many people now want to invest in stocks in exchange for higher returns after they have a certain amount of funds. However, if you don't know much about this, there are certain risks. Let's take a look at the advantages and disadvantages of taking the company as a shareholder and related information.

Advantages and disadvantages of the company's shareholding 1 legal analysis: the advantage is to avoid risks. If the company behind the stock investment is not well managed and generates debts, it will be borne by the equity holding company. The disadvantage is that it can only be added in the name of the company. The specific legal procedure of capital increase depends on the nature of the company.

For a limited liability company, when the company increases its capital, the company's shareholders and others other than the company's shareholders can subscribe for the capital contribution, but the company's shareholders have the priority to subscribe for the capital contribution, and whether others other than the company's shareholders can subscribe for it is also limited by the articles of association of the limited liability company.

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

Article 27 Shareholders may make capital contributions in cash or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in money and can be transferred according to law. However, the law,

Except for the property that cannot be used as capital contribution according to administrative regulations. Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail.

Article 28 Shareholders shall pay their respective subscribed capital contributions in full and on time in accordance with the Articles of Association. Where the shareholders make capital contributions in cash, they shall deposit their capital contributions in full into the account opened by the limited liability company in the bank.

Where non-monetary property is used as capital contribution, the formalities for the transfer of property rights shall be handled according to law. Where a shareholder fails to pay the capital contribution in accordance with the provisions of the preceding paragraph, he shall be liable for breach of contract to the shareholder who has paid the capital contribution in full and on time.

Article 29 After a shareholder has paid the capital contribution specified in the Articles of Association in full, the representative designated by all shareholders or the agent entrusted by all shareholders shall submit the application for company registration, the Articles of Association and other documents to the company registration authority to apply for registration of establishment.

The advantages and disadvantages of taking the company as a shareholder lie in avoiding risks. If the invested company does not manage well and generates debts, it will be borne by the equity holding company. The disadvantage is that it can only be in the name of the company.

For the company, it is the company's capital increase, and the specific legal procedures for the company's capital increase depend on the nature of the company. For a limited liability company, when it increases its capital, the company's shareholders and others other than the company's shareholders can subscribe for the capital contribution, but the company's shareholders have the priority to subscribe for the capital contribution, and whether others other than the company's shareholders can subscribe for it is also limited by the articles of association of the limited liability company.

A joint stock limited company shall increase its capital by issuing new shares. When a joint stock limited company issues new shares to increase its registered capital, the company's shareholders and anyone other than the company's shareholders can subscribe for new shares.

It is necessary to carefully understand the operating status, financial status, personnel status and shareholding structure of the company to be a shareholder, and then carefully analyze the market growth prospects of the company. According to the funds registered in industry and commerce, we can get a preliminary understanding of the company's main shareholding structure, and then we can find an accounting firm to conduct asset audit or negotiation evaluation.

Equity refers to the original acquisition of shareholders' rights after the establishment of the company. As long as it is necessary for the company to increase the number of shareholders, and the investor has the intention to participate in the shares, once the two sides reach an agreement, they will become shareholders. Although the shareholding is carried out by contract, it is not a contractual relationship in law. Generally, it shall be handled in accordance with relevant laws and articles of association. New shareholders should also be responsible for the debts of the company before becoming shareholders.

1. shareholding procedures: the procedures for holding shares by natural persons are relatively simple, while those for holding shares in the name of the company are relatively complicated;

2. Operation mode: natural person holding shares is a direct operation; Holding shares in a company is an indirect operation;

3. Taxation: Holding shares by natural persons can prevent companies from paying taxes repeatedly.

4. Income dividend: Share in the name of an individual, and the company's income dividend will belong to the individual in the future. If you buy shares in the company, the dividends will go to the company;

5. Form: individual shares are in the form of natural persons, and company shares are in the form of legal persons; 6? Registration: you need to go through the formalities of equity change in the industrial and commercial department, and you need to go through the formalities of equity change in the industrial and commercial department; 7. Responsibility: The responsibility is shared by the natural person and the company.

Pro: That is to avoid risks. If the management behind the invested company is not good, it will ultimately be borne by the equity holding company.

Disadvantages: Everything can only be done in the name of the company. Equity refers to the original acquisition of shareholders' rights after the establishment of the company. As long as it is necessary for the company to increase the number of shareholders, the investor has the intention to invest in shares, and once both parties agree.

When the subscription contract is established, you become a shareholder. Although the shareholding is carried out by contract, it is not legally necessary to establish a contractual relationship. Generally, it shall be handled in accordance with relevant laws and articles of association. New shareholders should also be responsible for the company's debts before they become shareholders.

Advantages and disadvantages of taking the company as a shareholder 3 What's wrong with taking the company as a shareholder?

Legal analysis: before you become a shareholder, first find out how much property the company has, that is, how much net assets it has. Please have an audit by an accounting firm if possible. Of course, it doesn't matter if the company is small.

It is necessary to know the way of holding shares, whether it is newly registered capital or equity transfer.

To increase the registered capital, it is necessary to complete the capital verification procedures and amend the articles of association, and then go through the formalities of change registration at the industrial and commercial bureau.

If it is equity transfer, it is necessary to amend the articles of association, and then go through the registration formalities with the industrial and commercial bureau.

All the shareholders of the original company made a resolution to agree not to accept new shareholders and how to adopt them, and signed an equity change agreement and a shareholding agreement (including equity ratio and dividend plan, etc.). ).

To increase the company's registered capital, the company's assets should be evaluated first, and then the total assets added by the company's evaluated assets and newly invested funds should be used as the newly-increased registered capital, and the proportion of newly-increased shareholders should be determined according to the ratio of newly-invested funds to the assets of the evaluated company.

If the new shareholders accept the investment of the original shareholders, the original shareholders should negotiate who is willing to transfer their investment. The original shareholders can sell part of the investment to reduce the investment ratio, or they can sell all the investment out of the shareholders' meeting. These should be negotiated between the original shareholders.

Legal basis: Article 27 of the Company Law of People's Republic of China (PRC), shareholders can make capital contributions in cash or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in money and transferred according to law. However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations.

Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail.