What are the equity relationships and what is the relationship between shares and equity

An "equity relationship" is one in which companies hold each other's equity (cross-shareholding) or one company holds equity in another.

Classification of Equity Relations:

The first meaning refers to the concentration of shares, that is, the proportion of shares held by the top five shareholders. In this sense, there are three types of equity structure: first, the equity is highly concentrated, and the absolute controlling shareholder generally owns more than 50% of the company's shares and has absolute control over the company; Second, the equity is highly dispersed, the company has no major shareholders, the ownership and management rights are basically completely separated, and the proportion of shares held by Shan ** Dong is less than 10%; Third, the company has a large relative controlling shareholder, and also has other major shareholders, with the proportion of shares between 10% and 50%.

The second meaning is the composition of shareholdings, that is, the number of shares held by different groups of shareholders with different backgrounds. In China, it refers to the shareholding ratio of state shareholders, corporate shareholders and public shareholders. Theoretically, the shareholding structure can be classified according to the distribution and matching of residual control and residual income claims.

From this perspective, the shareholding structure can be divided into two types: non-contestable control and contestable control. In the case of contestable control, residual control and residual claim are matched and shareholders are able and willing to exercise effective control over the board of directors and management; In an equity structure with non-contestable control, the controlling position of the controlling shareholder of the enterprise is locked, and the supervisory role of the board of directors and managers will be weakened.

Equity is a comprehensive right of the shareholders of a limited liability company or a shareholder of a company to enjoy personal and property rights and interests in the company, that is, equity is enjoyed by shareholders based on their shareholder qualifications.

Shares, on the other hand, refer to the share of the company's capital and represent the investor's contribution to the company.

Shares, which represent partial ownership of a company, are divided into common shares.

Preferred shares, equity that has not been fully paid.

Shares generally have the following three meanings:

1. Shares are the constituent components of several shares of **** capital;

2. The shares represent the rights and obligations of the shareholders of the shares;

3. Shares can be passed through ****.

form of expression of its value.

Equity is the shareholder's investment share in the start-up company, that is, the equity ratio, the size of the equity ratio, which directly affects the shareholder's right to speak and control the company, and is also the basis for the shareholder's dividend ratio.

Equity is the right to hold dividends, liquidation, compensation, voting, etc. The number of shares indicates the number of shares you hold in a company, and the number of shares you hold is directly proportional.

The certificate of equity is issued by the company to the shareholders, and it should have a company seal to prove that the person (or legal person) is a certificate of rights of the company's shareholders.

Equity refers to the rights and interests of the holder corresponding to the proportion of the holder and the right to bear certain responsibilities.

When investing in a partnership, the shareholders bear unlimited liability; In the case of investment in a corporation, the shareholders bear limited liability. So although both are equity, there is still a difference between the two.

Equity is power, whoever has more equity will have more power, and who will have the final say in the management and development of this store in the future; As long as the shares remain unchanged, the money earned will still be equally divided.

What is the difference between equity and shares? What is equity used for? What about shares? Can it be circulated?

1. The definitions are different.

Shares represent partial ownership of the company and are divided into common shares, preferred shares, and equity that has not been fully paid. Equity is the right of shareholders to obtain economic benefits from the company and participate in the operation and management of the company based on their shareholder qualifications.

2. The transfer is different.

The share transfer requires the signing of the "Equity Transfer Agreement", and the process of share transfer involves tax issues. During the share transfer process, the transferor needs to pay various taxes and fees.

The transferor is an individual: If the transferor is an individual, individual income tax is payable.

The transferor is a company: If the transferor is a company, there are more taxes involved.

Equity transfer: A shareholder of an equity transfer company transfers his or her shares to others in accordance with the law, making others become shareholders of the company. Equity transfer is a frequent and common way for shareholders to exercise their equity.

1. Characteristics of shares.

1. The amount of shares, the capital of the shares is divided into shares, and the amount of each share is equal, that is, the shares are a reflection of a certain value and can be measured in currency;

2. Equality of shares, that is, each share of the same type should have the same rights;

3. The indivisibility of shares, that is, shares are the most basic unit of the company's capital, and each share cannot be redivided;

4. The transferability of shares, that is, the shares held by shareholders can be transferred according to law. For example, Article 142 of the Company Law stipulates that the directors, supervisors and senior managers of the Company shall report to the Company the shares of the Company held by them and their changes, and the annual transfer of shares shall not exceed 25% of the total number of shares of the Company held by them during their tenure; The shares of the company held by the company shall not be transferred within l years from the date of listing and trading of the company's **. The directors, supervisors and senior managers of the company shall not transfer the shares of the company held by them within half a year after their resignation.

2. Main classification of shares.

1. The right to self-benefit.

That is, the right of shareholders to enjoy benefits based on their own capital contributions. Such as the right to receive dividends, the right to distribute property in the event of the dissolution of the company, and the right of first refusal in case of disagreement with the transfer of capital contributions by other shareholders. It is a right exercised by shareholders for their own benefit.

2. The right to common benefit.

That is, the rights enjoyed by shareholders to participate in the operation and management of the company based on their own capital contributions, such as voting rights, supervision rights, the right to request the convening of shareholders' meetings, the right to consult accounting books, etc. This is a right exercised by shareholders for the benefit of the company and for their own benefit.

Specifically, shareholders of a limited liability company have the right to:

1. Participate in the formulation and revision of the company's articles of association;

2. Participate in the shareholders' meeting and exercise the voting rights in accordance with the proportion of capital contribution;

3. Elect and be elected as directors and supervisors;

4. Check the minutes of the shareholders' meeting and the company's financial and accounting reports;

5. Transfer capital contribution in accordance with the provisions of the Company Law and the articles of association;

6. Preferential purchase of capital contributions transferred by other shareholders;

7. Preferential subscription of the company's new capital;

8. Supervise the company's production and operation activities;

9. Dividends are distributed according to the proportion of capital contribution;

10. Distribute the remaining assets of the company after bankruptcy, dissolution and liquidation in accordance with the law;

11. Other rights stipulated in the articles of association.

Legal analysis: equity and ** have the following relationship: equity is a comprehensive right, used to prove that the party is a shareholder of the company, ** is the form of the company's shares, the party owns, that is, owns the company's shares, after the party owns the shares, the party can become a shareholder of the company, so as to have equity in the company, can obtain economic benefits from the company, and the party's equity reaches a certain extent, you can participate in the company's related operations.

The law is based on the Company Law of the People's Republic of China

Article 125 The capital of a share is divided into shares, and the amount of each share is equal. The company's shares take the form of **. ** is a certificate issued by the company certifying the shares held by the shareholder.

Article 126 The principle of fairness and impartiality shall be applied to the issuance of shares, and each share of the same type shall have the same rights. For the same type of issuance of **, the issuance conditions and ** per share shall be the same; The same price shall be paid per share for any unit or individual shareholder.