What is the use of company equity?

Legal analysis: Equity is a comprehensive right of personal rights and property rights enjoyed by shareholders of a limited liability company or a joint stock limited company. That is, equity is the right enjoyed by shareholders based on their shareholder qualifications to obtain economic benefits from the company and participate in the company's operation and management. Equity is the share of shareholders' investment in start-up companies, that is, the equity ratio, which directly affects shareholders' right to speak and control the company and is also the basis of shareholders' dividend ratio.

Legal basis: According to Article 71 of People's Republic of China (PRC) Company Law, shareholders of a limited liability company can 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.