What is the use of small company equity?

Legal analysis: it makes sense for small companies to give shares. Small companies can give their shares to their representatives to own the shares corresponding to the shares in the company, that is, they can become shareholders of small companies and enjoy shareholder rights such as dividends and profit distribution.

Legal basis: Article 142 of the Company Law of People's Republic of China (PRC): Acquisition and Pledge of Company's Shares A Company may not acquire its own shares. However, except for one of the following circumstances:

(1) Reduce the registered capital of the company.

(2) Merging with other companies holding shares of the Company;

(3) Using shares for employee stock ownership plan or equity incentive;

(4) Shareholders request the company to purchase their shares because they disagree with the resolution of merger or division made by the shareholders' meeting;

(5) Using shares for the conversion of corporate bonds convertible into shares by listed companies.

(6) The need for listed companies to safeguard their own values and shareholders' rights and interests.