What are the legal risks of holding shares on behalf of others?

1, the validity of the equity holding agreement was denied; 2. Shareholder status is not recognized; 3. Equity is fined; 4. Nominal shareholder risk. What are the legal risks of holding shares on behalf of others? Let me give you a detailed answer.

1. What are the legal risks of holding shares on behalf of others?

1, the validity of the equity holding agreement was denied;

2. Shareholder status is not recognized;

3. Equity is fined;

4 Nominal shareholder risk.

5. Legal basis: According to Article 77 of the Company Law, a joint stock limited company may be established by means of initiation or public offering. Sponsor refers to the company established by the sponsors who subscribe for all the shares that should be issued by the company. The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.

Second, how to prevent the legal risks brought by holding shares on behalf of others.

1, the behavior of holding shares by proxy is very common. Proxy shareholding exists because some investors, for other reasons, are inconvenient or unwilling to show it in the company's register of shareholders or the filing documents of the registration authority, so they look for a trustworthy person who is willing to be a nominal shareholder for themselves. Or, in order to avoid the company law's restrictions on the number of shareholders of a company (limited liability companies are less than 50, and joint stock limited companies are less than 200), a number of actual shareholders are gathered together and held by an entity, and the employee stock ownership association and the trade union hold shares for this purpose (both of these stock ownership modes have become history because they are banned). Trust shareholding is also a kind of stock shareholding, which is generally used for the implementation of employee equity incentive plan. Due to the provisions of the trust law, the legal status and legal relationship are relatively clear.

In fact, a large number of individuals hold shares on their behalf, including legal persons and natural persons. Before the promulgation of Judicial Interpretation of Company Law (III) by the Supreme Court, the legal status of this kind of stock holding was vague and there were many disputes and disputes. Therefore, if it is an agent shareholding, in addition to choosing a trustworthy nominal shareholder (of course, the principal should also be trustworthy), it is also necessary to understand the legal definition of the legal relationship of agent shareholding and the risks of both parties, so as to formulate a more suitable operation plan and contract terms.