How to Identify Equity Investment Fraud

Legal analysis: the forms of fraud can be referred to as follows: capital preservation commitment: the actor will generally promise to repay the principal and interest or pay the return within a certain period of time in the form of money, kind and equity. Membership commission: according to the relevant laws and regulations, the income comes from the commission of the offline, and if the number of people exceeds 30, it can be characterized as illegal pyramid schemes if the level exceeds 3; Creditor's right investment: The loan business is a project that needs permission according to the regulations of the State Council. At present, laws and regulations do not authorize private equity funds to engage in debt investment. When the debt investment reaches a certain scale, it is suspected of operating illegal financial business; Limited partnership: In the name of establishing a limited partnership by means of financing, the promoters only need to inform the investors and promised income of the invested company in the partnership agreement, without specifying the background, operation and financial status of the invested company.

Legal basis: Article 192 of the Criminal Law of People's Republic of China (PRC) illegally raises funds by fraud for the purpose of illegal possession. If the amount is relatively large, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than seven years or life imprisonment, and shall also be fined or confiscated.

If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.

Article 71 of People's Republic of China (PRC) Company Law Shareholders of a limited liability company may transfer all or part of their shares to each other.

Shareholders' transfer of equity to persons other than shareholders shall be approved by more than half of other shareholders. Shareholders shall notify other shareholders in writing to agree to the transfer of their shares. If other shareholders fail to reply within 30 days from the date of receiving the written notice, they shall be deemed to have agreed to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity; Do not buy, as agreed to transfer.

Under the same conditions, other shareholders have the priority to purchase the equity transferred with the consent of shareholders. If two or more shareholders claim to exercise the preemptive right, their respective purchase proportions shall be determined through consultation; If negotiation fails, the preemptive right shall be exercised in accordance with their respective investment proportions at the time of transfer.

Where there are other provisions on equity transfer in the articles of association, such provisions shall prevail.