What does equity mean?

Equity is a comprehensive right of personal rights and property rights enjoyed by shareholders of a limited liability company or a joint stock limited company by fulfilling their capital contribution obligations. That is to say, equity is the shareholder's qualification based on the performance of capital contribution obligations, and then enjoys the right to obtain economic benefits from the company and participate in the company's management. The rights of shareholders in limited liability companies mostly use equity, and joint-stock limited liability companies mostly use shares. Equity property right is the right of shareholders to enjoy income based on their own capital contribution. For example, the right to share dividends, the right to distribute property when the company is dissolved, and the preemptive right when other shareholders do not agree to transfer their capital contribution. This is the right that shareholders exercise for their own interests. Personal rights of stock rights refer to the rights enjoyed by shareholders to participate in the company's operation and management based on their own capital contributions, such as voting rights, supervision rights, shareholders' meeting claims, and the right to consult accounting statements. This is the right that shareholders exercise for the benefit of the company and also for their own benefit.

Legal objectivity:

Article 4 of the Company Law Shareholders of a company shall enjoy the right to return on assets, participate in major decisions and choose managers according to law. Article 34 Shareholders shall receive dividends in proportion to the paid-in capital contribution; When the company increases its capital, shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution. Except that all shareholders agree not to pay dividends according to the proportion of capital contribution or not to subscribe for capital contribution in priority.