Secondly, with regard to the determination of a shareholder`s characterization on the principle of privity, when the effective investor and the shareholder sign the participation agreement, they can certainly agree on the rights and obligations of both parties, such as .B agreement on the date and method of distribution of dividends, the exercise of voting rights, etc. However, the agreement only engages the parties who sign the contract and has no automatic effect on the company. After having a dispute with the shareholder over the equity agreement and intending to receive dividends, the effective investor needs proof that the company paid dividends to the anonymous shareholder. First, with respect to the question of capital confirmation, the question of whether the real investor is registered with the industry and trade authority has little influence on the confirmation of its capital. The most fundamental basis for the Tribunal`s decision is whether the parties have expressed their intention to participate. Concretely, two elements are necessary – one is a written contract, the other the investment itself. To be valid, a shareholders` pact entrusted should specify the following: a shareholders` pact entrusted is a formal agreement between certain shareholders and a company in which so-called „stupid“ shareholders 3 min. At the same time, the protection of the rights and interests of registered shareholders and anonymous shareholders carries certain risks. The series of participation issues draws investors` attention to commercial activities in the newly designated Greater Bay Area (CCM). For this reason, the authors have examined disputes relating to the participation agreement in judicial practice and have summarized here certain rules of judicial adjudication. The dispute between Fuzhou Tiance Industrial Co Ltd and Fujian Weijie Investment Co Ltd and the dispute over the transfer of capital from Yang Jinguo to Lin Jinkun, which were tried by the Supreme Court in 2017, are among the related cases. We can therefore see the following facts: (1) The participation contract may be inoperative, even if it is contrary only to the department`s rules or other non-binding legal provisions; (2) the risk of financial security and public interest participation agreements being invalidated is significantly increased; and (3) The publicly traded company must strengthen in advance the clearing and standardization of the participation relationship.
The allocation of equity is clearly positive for the optimization of resource allocation, which helps investors achieve their investment objectives, enables companies to obtain financial support for development, boost management efficiency and protect the privacy of investors.