The difference between possession and control

Legal analysis: the difference between control right and control right: control right refers to the right to hold more than 50% of the company's shares, or the right to hold the most shares although it does not reach more than 50%, which can affect the business activities of the enterprise. Control refers to the right to own a certain proportion of shares in a company or actually control the company through an agreement.

Legal basis: Article 216 (1) of the Company Law of People's Republic of China (PRC) The term "senior managers" as mentioned in this Law refers to the managers, deputy managers, financial officers, secretary of the board of directors and other personnel stipulated in the articles of association of a listed company.

(2) Controlling shareholders refer to shareholders whose capital contribution accounts for more than 50% of the total capital of a limited liability company, or whose shares account for more than 50% of the total share capital of a joint stock limited company, or whose voting rights are sufficient to have a significant impact on the resolutions of the shareholders' meeting.

(3) "Actual controller" refers to a person who is not a shareholder of the company, but can actually control the company's behavior through investment relations, agreements or other arrangements.

(4) Relationship refers to the relationship between the controlling shareholder, actual controller, directors, supervisors and senior managers of the company and the enterprises directly or indirectly controlled by them, as well as other relationships that may lead to the transfer of the company's interests. However, state-controlled enterprises are not related only because they are controlled by the state.