Shareholders may wish to amend the share structure of their
subsidiary in China for several reasons by share transfer.
Shareholder share rights 股权
(Guquán) can be transferred to shareholders in whole or in
part.
Under the Company Law, transferring share rights to a third
party shall be approved by the majority of shareholders. Below, we
take you through the basics of share transfer as provisioned by the
Company Law.
Notice
The shareholder shall submit a written notice of the proposed
transfer to seek consent. If there is no response within 30 days
upon receipt of the written notice – then the transfer is
deemed approved.
First Refusal
If the majority of the other shareholders disagree, then those
who disagree shall purchase the share rights. Refusal to purchase
the share rights is deemed as consent to the transfer. Under the
same conditions, the other shareholders has the right of first
refusal.
