Provisions on pledge of shares of limited liability companies

Legal analysis: the provisions and matters needing attention of the pledge of the equity of a limited liability company are as follows: if the equity of a limited liability company is pledged, the parties concerned shall conclude a written contract; The equity pledge of a limited liability company can only take effect after the pledge registration formalities are handled by the administrative department for industry and commerce; After the equity is pledged, it shall not be transferred. In order to make the transfer legal and effective, the pledgor and the pledgee must reach an agreement through consultation. Must comply with the provisions of the articles of association.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 427 To establish a pledge, the parties shall conclude a pledge contract in writing.

A pledge contract generally includes the following clauses:

(1) The type and amount of secured creditor's rights;

(2) The time limit for the debtor to perform the debt;

(3) The name and quantity of the pledged property.

(4) the scope of the guarantee;

(5) Time and method of delivering pledged property.

Article 428 Pledgee and Pledger agreed that when the debtor fails to perform due debts, the pledged property belongs to the creditor and can only be paid in priority according to law.