At the beginning of the business, how should the equity be distributed

If you are a start-up company, then you should make a reasonable equity allocation according to the amount of money each person has invested and the position they occupy in your company. If you don't know how to do it, you can consult Facaida, they are a professional organization that deals with corporate equity issues, and have done equity structure design and employee incentives for many large enterprises, and the landing effect is not bad. For more information, you can just ask for it.

Legal analysis: In the early stage of start-up, the distribution of equity should adhere to the binding of the founder and the equity. The principle of its cashing in installments.

At present, the most popular equity distribution model in the market is: the capital contribution of the first owner accounts for more than 50% of the company's total capital, or the shares it holds account for more than 50% of the company's total share capital, and enjoys absolute control.

Legal basis: Article 216 of the Company Law of the People's Republic of China The following terms in this Law have the following meanings:

1) Senior management personnel refer to the company's managers, deputy managers, financial leaders, secretaries of the board of directors of listed companies and other personnel specified in the company's articles of association.

2) The controlling shareholder refers to the shareholder whose capital contribution accounts for more than 50% of the total capital of the limited liability company or whose shares account for more than 50% of the total share capital of the company; Shareholders whose capital contribution or shareholding ratio is less than 50%, but whose voting rights are sufficient to have a significant impact on the resolutions of the shareholders' meeting or shareholders' general meeting according to the amount of their capital contribution or the shares they hold.

3) "Actual controller" refers to a person who is not a shareholder of the company, but is able to actually control the company's behavior through investment relationships, agreements or other arrangements.

4) "Related relationship" refers to the relationship between the controlling shareholder, actual controller, director, supervisor and senior management of the company and the enterprises directly or indirectly controlled by the company, as well as other relationships that may lead to the transfer of the company's interests. However, state-controlled enterprises are not only related to each other because they are also controlled by the state.

Legal analysis: In addition to the partners (founders and co-founders) of the company, the persons involved in the distribution of shares in the company include employees, subordinates, external advisors and investors. Therefore, when designing the equity structure in the early stage of entrepreneurship, it is necessary to consider the issues of later financing, talent introduction and employee subordinate incentives, and reserve part of the shares in the early stage of equity distribution.

The reserved shares can be divided into three parts as follows:

1) Equity incentive shares.

Equity incentive is a magic weapon to cultivate the sense of ownership of employees' subordinates, which can effectively improve the work efficiency of employees' subordinates. In overseas capital markets, equity incentives are even a necessary condition for investor recognition.

2) Reserve the share of the new partner.

Reserving sufficient equity shares in the early stage is conducive to the continuous attraction of outstanding talents, the continuous injection of fresh blood into the enterprise company, and the maintenance of the strength and vitality of the enterprise company.

3) Reserved financing dilution share.

Financing is a necessary part of the development path of the company, and each round of financing shares will be diluted, so this part needs to be set aside in advance.

After the above three parts of the shares are reserved, the founding partners will distribute the remaining shares in proportion, and the reserved shares will be put into the equity pool and held by the founders.

Legal basis: Article 141 of the Company Law of the People's Republic of China The shares of the company held by the promoter shall not be transferred within one year from the date of establishment of the company. The shares issued before the company's public offering of shares shall not be transferred within one year from the date of listing and trading on the company's ** exchange.

The directors, supervisors and senior management of the company shall report to the company the shares of the company and their changes, and the annual transfer of shares during their tenure shall not exceed 25% of the total number of shares of the company held by them; The shares of the company held by the company shall not be transferred within one year from the date of listing and trading of the company. Within half a year after the resignation of the above-mentioned personnel, they shall not transfer the shares of the Company held by them. The articles of association of the company may make other restrictive provisions on the transfer of the shares of the company held by the directors, supervisors and senior management of the company.

Legal analysis: the shareholders of a limited liability company are liable to the company to the extent of their subscribed capital contributions; The shareholders of the shares are liable to the company to the extent of the shares they subscribe.

Legal basis: According to Article 3 of the Company Law of the People's Republic of China, a company is an enterprise legal person, has independent legal person property, and enjoys the property rights of legal person.

The company is liable for the debts of the company with all its property. The shares of the limited liability company shall be liable to the public stove cavity department to the extent of its subscribed capital contribution; Shareholders of the Company shall be liable to the Company to the extent of the shares they have subscribed for.

In your case, it is not suitable for you to allocate equity according to the amount of capital contribution.

Ask a question: What do you suggest?

Answer: It is recommended that you negotiate with your partners before distributing the shares. In the early stage of starting a business, financial connections, technology and management are all important, and it is necessary to evaluate which one is more important and then negotiate the shareholding ratio.

Of course, there are cases like yours where the equity is still evenly distributed, and it is also the result of the negotiation between the partners.

Question me 51 he 49. Is it reasonable for me to pay 700,000 and he to pay 300,000?

You can also ask him what he thinks, and maybe the partner is proposing a lower percentage than you.

Ask a question: Okay, thank you.