Provisions of the Company Law on Capital Increase and Share Expansion

Legal subjectivity:

The act of increasing the registered capital of the company according to law in order to expand the business scale, broaden the business scope and improve the credit level. The company's capital increase can be divided into two situations: a, the company's passive capital increase-the company arrives at 20% at the time of registration, and makes up the remaining 80% of the registered capital within two years after registration; Some projects need funds. B. The enterprise voluntarily increases its capital-if the paid-in capital of the enterprise is consistent with the registered capital, the enterprise will increase its registered capital through capital increase.

Legal objectivity:

Company Law of the People's Republic of China

Article 34

When a limited liability company increases its capital and shares, the shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution, unless otherwise agreed by the parties. In the case that the new shareholders contribute to the shares, the old shareholders also need to declare that they will give up all or part of their priority subscription.