Several ways of stock right withdrawal mechanism

1. Equity transfer: refers to the civil legal act that shareholders of a company transfer their shares to others according to law, so that others become shareholders of the company. Equity transfer is a frequent and common way for shareholders to exercise their equity;

2. Capital reduction of the company: refers to the act of reducing the registered capital according to the actual situation of the company's capital surplus or serious loss and the actual situation of the company's business;

3. Ask the company to buy back;

4. Dissolution of a company: refers to the legal act of an established company to stop its foreign business activities, start company liquidation and deal with unfinished business due to its articles of association or legal reasons, thus eliminating its legal person status;

5. Bankruptcy liquidation exit: Bankruptcy liquidation is the last strategy adopted by equity investment institutions after investment failure. Through bankruptcy liquidation, equity investment institutions will bear economic losses and reputation damage.

Company's equity transfer process:

1. Where the equity is transferred to a third party other than the shareholders, the shareholders who transfer the equity shall apply to the board of directors of the company, and the board of directors shall submit it to the shareholders' meeting for discussion and voting; The equity transfer between shareholders does not need the approval of the shareholders' meeting, as long as the company and other shareholders are notified;

2. Both parties sign an equity transfer agreement, specifying the amount, price, procedures, rights and obligations of both parties, so as to make it an effective legal document for binding and regulating the behavior of both parties. The equity transfer contract complies with the law;

3. In the process of equity transfer, in order to prevent the loss of state-owned assets, the auction, transfer, merger and sale of state-owned assets shall be evaluated according to relevant regulations. Equity transfer price generally cannot be lower than the value of the net assets contained in the equity;

4. For the equity transfer of Sino-foreign joint ventures and Sino-foreign cooperative limited companies, according to the current regulations, the transfer procedures can only be handled with the consent of the superior competent department of Chinese shareholders and the approval of the original examination and approval authority;

5. Take back the original shareholder's capital contribution certificate, issue it to the new shareholder, handle the change registration of the company's shareholder list, cancel the original shareholder list, record the name, domicile and transferred capital contribution of the new shareholder in the shareholder list, and amend the company's articles of association accordingly. However, the capital contribution certificate, as the proof that the company has fulfilled its capital contribution obligations and enjoyed the equity, is only the proof that the shareholders are unfavorable to the company, which is not enough to produce the effect of publicity;

6. The newly revised articles of association, shareholder change and capital contribution for the registration of industrial and commercial change with the administrative department for industry and commerce. At this point, the legal procedures for the equity transfer of the limited liability company have been completed.

To sum up, there is no legal restriction on the change of the company's equity after the change, and it is completely decided by the shareholders and the company freely. There are five ways to withdraw from the stock right, namely, stock right transfer, company capital reduction, company repurchase, company dissolution, bankruptcy liquidation and withdrawal. After the equity transfer, the company shall cancel the capital contribution certificate of the original shareholders, issue the capital contribution certificate to the new shareholders, and modify the records of shareholders and their capital contribution in the articles of association and the register of shareholders accordingly. There is no need to vote at the shareholders' meeting to amend the Articles of Association this time.

Legal basis:

Article 72 of the Company Law of People's Republic of China (PRC)

When the people's court transfers the shareholder's equity according to the compulsory execution procedure prescribed by law, it shall notify the company and all shareholders, and other shareholders have the preemptive right under the same conditions. Other shareholders who fail to exercise the preemptive right within 20 days from the date of notification by the people's court shall be deemed to have waived the preemptive right.

Article 73

After the equity is transferred in accordance with the provisions of Articles 71 and 72 of this Law, the company shall cancel the capital contribution certificate of the original shareholder, issue the capital contribution certificate to the new shareholder, and change the records of shareholders and their capital contribution in the Articles of Association and the register of shareholders accordingly. There is no need to vote at the shareholders' meeting to amend the Articles of Association this time.