What does collective ownership mean?

Collective holding refers to an organization or a group of people holding the equity of an enterprise in cooperation to manage and operate the enterprise. Through collective holding, shareholders can enjoy the benefits of the enterprise, participate in the business decision-making and development planning of the enterprise, and enhance the stability and sustainability of the enterprise. Usually, collective holding is formed by the cooperation of some small and medium-sized enterprises, and its purpose is to enhance the competitiveness and viability of enterprises.

Compared with the traditional holding mode, collective holding has better risk control ability, because the dispersion of equity makes a single shareholder not bear all the losses. In addition, collective holding can also avoid the excessive dependence of enterprises on minority shareholders or financial institutions, thus reducing the risks of enterprise financing, business development and strategic decision-making.

However, there are also some problems in collective holding. Because collective decision-making needs to coordinate the interests and opinions of all shareholders, the decision-making efficiency is low, and it is difficult to unify the strategy and quickly respond to market trends. At the same time, the unequal rights and different voting rights of different shareholders may also lead to management difficulties and internal contradictions. Therefore, how to coordinate the interests of all parties and improve the efficiency of collective decision-making and internal cooperation ability is a challenge that collective holding needs to face and solve.