What does the company share reform mean?

The share reform of the company is called the share-trading reform, which means that listed companies can balance the interests between tradable shareholders and non-tradable shareholders through consultation. The split share structure can no longer meet the needs of the opening and development of the capital market, and the split share structure reform must be carried out.

Stock right setting and selection after the reform of company system;

According to the nature of equity, it is divided into common stock and preferred stock. Ordinary shareholders can only participate in income distribution after the company withdraws the provident fund, public welfare fund and pays the dividends of preferred shares, and their dividends are uncertain. Preferred stock is superior to common stock in dividend determination and liquidation because it has priority over common stock shareholders. However, they generally do not participate in management and have no voting rights. It can be seen that the company should choose the equity type according to local conditions when it is restructured.

According to the nature of investors, it can be divided into state-owned shares, state-owned legal person shares, social legal person shares, individual shares and foreign-funded shares. For state-owned shares, dividends need to be paid.

For state-owned legal person shares, because of the stability of state-owned capital participation and simple approval procedures, it is set as much as possible. For foreign shares: if circulation is needed, B shares and H shares can be set up; If there is no need for circulation, it should be set as common stock.