What is the significance of giving up part of the equity in commercial buildings?

Equity transfer is a common way for shareholders to exercise their equity. China's Company Law stipulates that shareholders have the right to transfer all or part of their capital contribution in a legal way. The system of free transfer of shares is one of the most successful manifestations of modern company system. With the establishment of China's market economy system, the reform of state-owned enterprises and the implementation of the Company Law, equity transfer has become an important form for enterprises to raise capital, reorganize property rights and optimize resource allocation. The disputes caused by this are the most common in company litigation, and the effectiveness of the equity transfer contract is the difficulty in the trial of such cases. The equity transfer agreement is the intention of the transferor to deliver the equity and charge a premium, and the transferee to pay the premium to obtain the equity. Equity transfer is an act of property right change. After the equity transfer, all the rights and obligations of shareholders to the company based on their shareholder status are transferred to the transferee at the same time, so the transferee becomes a shareholder of the company and obtains shareholder rights. According to the first paragraph of Article 44 of the Contract Law, the equity transfer contract comes into effect upon its establishment.