Equity Transfer Contract Effectiveness Theory Co., Ltd

Laws on corporate equity transfer are such an important component of moderncorparate system that most countries have them legislated. Corporate Law ofPeople’s Republic of China(hereinafter to be referred as Corporate Law) alsodevotes chapters and parts to identifying and clarifying these topics.To promote transfer of equity, optimize resources, improve corporatemanagement and ensure that shareholders can achieve best results, this paper mainlydwells upon effectiveness of equity transfer contracts. After analyzing the practicalproblems in accordance with the current corporate law, and drawing upon foreignlegal systems, this paper proposes its ideas and suggestions.This paper, including four parts apart from introduction and conclusion, aims toelaborate on equity, transfer of equity system and its agreement effects. Its outline isas follows:Part one: definition of transfer equity, its chararacteristics, categories and legalprinciples; characteristics and effectiveness of equity transfer contract. Part two:effectiveness of equity transfer contract, including effectiveness of partial or wholetransfer of equity contract; effectiveness of equity transfer contract limited bycorporate rules and regulations. Part three: effectiveness of contract of equitytransfer between a shareholder and a third party, particularly the effectiveness of thecontract that disobeys the legal procedure, the effectiveness of conditional contractof equity transfer and the approach to the invalid or revocable equity transfercontracts. Part four: effectiveness of flawed contract of equity transfer andeffectivenss of registration of equity transfer.