How to distribute the equity of a joint stock limited company

Legal analysis: how to allocate the equity of a limited liability company is divided according to the capital contribution method and amount advocated by the promoters and other shareholders when the company was first established. The founder will come up with a plan and divide it fairly. To set aside 10% as the reserved equity of the company, the founder must hold more than 50% of the equity.

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

Article 26 The registered capital of a limited liability company is the capital contribution subscribed by all shareholders registered with the company registration authority.

Where laws, administrative regulations and decisions of the State Council have other provisions on the paid-in registered capital and the minimum registered capital of a limited liability company, those provisions shall prevail.

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, 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.