What are the risks of equity inheritance?

The obstacles and risks of equity inheritance are:

1. If the Articles of Association has other provisions on equity inheritance, the legal heir cannot directly inherit the shareholder qualification;

2. People with specific identities, such as civil servants, may not inherit the shareholder qualification according to the law, but may inherit the property rights corresponding to the equity;

3. The succession of shareholder qualification may have a negative impact on the company's operation.

legal ground

Article 11 of the Company Law of People's Republic of China (PRC)

To establish a company, the articles of association must be formulated according to law. The Articles of Association are binding on the Company, shareholders, directors, supervisors and senior management.

Article 75

After the death of a natural person shareholder, his legal successor can inherit the shareholder qualification; However, unless otherwise stipulated in the articles of association.