What does it mean for a company to transfer its equity?

Legal analysis: the transferor delivers the equity and collects the premium, and the transferee pays the premium to obtain the equity, which is the intention of both parties to transfer the equity. Equity transfer is an act of property right change. After the equity transfer, all the rights and obligations of shareholders to the company based on their shareholder status are transferred to the transferee at the same time, so the transferee becomes a shareholder of the company and obtains shareholder rights.

Legal basis: Article 71 of the Civil Code of People's Republic of China (PRC). Shareholders of a limited liability company may 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.