How to auction the company's equity?

Legal analysis: When the indebted shareholders are unable to pay off the debts due, the court can realize the property right of the indebted shareholders-stock right through compulsory transfer according to the conditions and procedures stipulated by law, or pay off the debts with stock right. The compulsory transfer of equity shall be carried out in accordance with the general provisions on equity transfer. If other shareholders agree to transfer or give up the preemptive right, the people's court may auction, sell off or otherwise transfer the equity or investment right of the person subjected to execution in the company. If other shareholders object to the execution, it will not affect the execution.

Legal basis: Article 242nd of the Civil Procedure Law of People's Republic of China (PRC), if the person subjected to execution fails to perform the obligations specified in the legal documents according to the notice of execution, the people's court has the right to inquire about the deposits, bonds, stocks, fund shares and other properties of the person subjected to execution. The people's court has the right to seal up, freeze, transfer or change the property of the person subjected to execution according to different circumstances. The property inquired, sealed up, frozen, transferred or changed in price by the people's court shall not exceed the scope of obligations that the person subjected to execution shall perform. When the people's court decides to seal up, freeze, transfer or change the price of property, it shall make a ruling and issue a notice of assistance in execution, which the relevant units must handle.