The Performance Sharing Agreement is legally binding, but the specific situation needs to be determined according to the contents of the agreement and relevant laws and regulations.
First of all, the performance agreement refers to the agreement reached between shareholders or between shareholders and the company, stipulating that one party enjoys the rights of the company's shares without actually contributing capital. If the contents of the Performance Sharing Agreement comply with the relevant provisions of the Contract Law and the Company Law, the Agreement has legal effect.
However, the legal effect of the performance sharing agreement is affected by the following factors:
Whether the content of the agreement is legal: the content of the performance sharing agreement must comply with the relevant provisions of the Contract Law and the Company Law, otherwise it may be deemed invalid.
Protection of shareholders' rights and interests: the signing of the performance sharing agreement cannot infringe on the legitimate rights and interests of shareholders, otherwise shareholders can bring a lawsuit to the court to cancel the agreement.
Whether the legal procedures have been fulfilled: Relevant legal procedures, such as those stipulated in the Articles of Association and resolutions of the shareholders' meeting, must be fulfilled when signing the Performance Sharing Agreement, otherwise the agreement may be deemed invalid.
To sum up, the legal effect of the performance sharing agreement needs to be evaluated according to the specific situation. Before signing the performance sharing agreement, it is recommended to consult professional lawyers or relevant institutions to understand the relevant legal provisions and risks and ensure that the agreement is legal and effective.
Legal basis:
The Contract Law of People's Republic of China (PRC) stipulates: "When concluding and performing a contract, the parties shall abide by laws and administrative regulations, respect social morality, and shall not disturb the social and economic order or harm the public interests."
The Company Law of People's Republic of China (PRC) stipulates: "Shareholders shall pay their 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. If a shareholder fails to pay his capital contribution in accordance with the provisions of the preceding paragraph, he shall be liable for breach of contract to the shareholder who paid his capital contribution in full and on time. "