However, in reality, some people call the contribution of intangible assets such as industrial property rights and non-patented technology "dry shares", which is actually not a correct understanding of the asset value of intangible assets. Intangible assets whose value is confirmed by evaluation should be recognized as actual capital contribution when the company is established, rather than the so-called "dry shares". The Company Law stipulates that the amount of capital contribution with industrial property rights and non-patented technology shall not exceed 20% of the registered capital of a limited liability company, unless the state has special provisions on the adoption of high-tech achievements.
Therefore, there is no "performance shares" in China Company, so it is far from taking performance shares as collateral. If the shares are contributed by intangible assets, you should check the company's industrial and commercial registration files, and the shares under its name are shares that can be mortgaged according to law.
To put it bluntly, you use technology to buy shares. Giving you dividends is generally a way for enterprises to retain talents.
"Performance shares" refers to the shares that shareholders can hold a certain proportion of the company's shares without actually contributing capital. According to the laws of our country, shareholders should pay their subscribed capital contributions in full according to the articles of association. Where a shareholder fails to pay the subscribed capital contribution in accordance with the provisions of the preceding paragraph, he shall be liable for breach of contract to the shareholder who has paid the capital contribution in full. So there is no so-called "performance stock" in China.
However, in reality, some people call the contribution of intangible assets such as industrial property rights and non-patented technology "dry shares", which is actually not a correct understanding of the asset value of intangible assets. Intangible assets whose value is confirmed by evaluation should be recognized as actual capital contribution when the company is established, rather than the so-called "dry shares". The Company Law stipulates that the amount of capital contribution with industrial property rights and non-patented technology shall not exceed 20% of the registered capital of a limited liability company, unless the state has special provisions on the adoption of high-tech achievements.
Therefore, China Company does not have "performance shares" and does not need to use performance shares as collateral. If the shares are contributed by intangible assets, you should check the company's industrial and commercial registration files, and the shares under its name are shares that can be mortgaged according to law.