Main contents of equity withdrawal agreement
1. Equity transfer
1. Transfer of equity between shareholders
“The first paragraph of Article 72 of the Company Law stipulates that shareholders of a limited liability company may transfer all or part of their equity to each other.
2. Transfer of equity by persons other than shareholders
Article 72, Paragraph 2 of the "Company Law" stipulates that the transfer of equity by a shareholder to a person other than the shareholder must be approved by more than half of the other shareholders.
3. Company regulations regarding share transfer rules
"Company Law" Article 72, Paragraph 4 stipulates that if the company's regulations have regulations on equity transfer, those regulations shall prevail.
Conditions for application of equity withdrawal agreement
1. The company does not distribute profits to shareholders for five consecutive years, but the company has made profits for five consecutive years and meets the conditions for profit distribution stipulated in this law;
2. The company merges, splits, or transfers its main assets;
3. When the business period stipulated in the company's articles of association expires or other reasons for dissolution stipulated in the articles of association occur, the shareholders' meeting passes a resolution to amend the articles of association to enable the company to survive.
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