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 and the investor has the intention to invest in shares, once the two sides reach an agreement, they will become shareholders. 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.
The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"