Generally speaking, there are two ways to dilute equity:
Dilution of equity through capital increase China does not stipulate that capital increase requires the consent of all shareholders. In fact, in reality, many shareholders do not agree to increase capital. When the company increases its registered capital, shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution. Except that all shareholders agree not to pay dividends according to the proportion of capital contribution or not to subscribe for capital contribution in priority.
Therefore, the common way to dilute the equity is to increase the registered capital. Dilution of equity by means of equity transfer The provisions of the Company Law of our country on equity transfer are different according to the nature of the company, that is, limited liability companies and joint stock limited companies have different provisions on equity transfer. After the capital increase is completed, if Kalian Technology increases its registered capital again, the new shareholders' valuation of the company before the capital increase should not be lower than the valuation after the completion of this investment, so as to ensure that the equity value of the company held will not be diluted.
Precautions:
During the operation of the company, both of them hope to have equal rights and obligations when setting up the company, so they may choose to set up the company with a 50% equity ratio. However, this shareholding ratio may cause some problems.
They each hold 50% of the shares. On the surface, their rights and obligations are equal and seemingly fair, but it is easy to cause a great disadvantage in the operation of the company, that is, the shareholders' meeting of the company cannot form an effective resolution.
Because "Company Law" stipulates that the general matters of the resolution of the shareholders' meeting shall be passed by more than half of the voting rights, if the opinions of two shareholders are not unified, it will be impossible to pass the resolution by voting, and it will be impossible to form an effective resolution of the shareholders' meeting, and its shareholders' meeting mechanism will be invalid for a long time, and internal management will be seriously hindered.
In this case, the people's court will tend to think that the company is deadlocked and its management has encountered serious difficulties. According to the relevant provisions of the Company Law, the people's court may decide to dissolve the company according to law.