Is it legal for a major shareholder to use the company's financial funds to pay for the purchase of minority shareholders' equity?

The use of company funds by major shareholders constitutes shareholder loans, which is compliant after certain procedures and formalities are fulfilled. For example, a major shareholder signs a loan contract with the company, and the funds are used for compensation. The loan contract is recognized by other shareholders and is compliant. Incomplete or incomplete procedures will constitute misappropriation of company funds by major shareholders, which will seriously constitute a crime.

As for the acquisition of minority shareholders' equity, the responsibility for the legality and compliance of the source of funds is mainly borne by the major shareholders. For minority shareholders, it is enough to get the money, and generally do not investigate the source of funds. When minority shareholders are legal persons, they need to pay attention to the source of funds and explain the consistency or inconsistency between the bill voucher and the purchase contract due to the requirements of their own financial norms.