Under these circumstances, children will not be able to inherit the company s shareholder status!

Mondo Finance Updated on 2024-01-31

Author: Lawyer Zhou Jun.

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Entrepreneurs have worked hard to create and accumulate huge wealth, and they hope to pass it on to their relatives and children. But few people realise that only by planning ahead can you ensure that your wealth is passed on to your wishes.

For example, if the company's equity is not planned in advance, once the accident comes, the children may not be able to become shareholders of the company at all, and the company that they have worked hard to establish and put great effort into will eventually be controlled by others.

An heir cannot become a shareholder of the company in the following situations:

1. The articles of association of the company stipulate that the rights of shareholders cannot be inherited

In order to avoid the disagreement between shareholders caused by inheritance and the destruction of human compatibility, some companies will stipulate in the articles of association that if the shareholder dies, the rights of the shareholder cannot be inherited, and the heir can only enjoy the benefits of share transfer. In this case, the heirs will not be able to become shareholders of the company.

2. The articles of association of the company stipulate that shareholders have the right of first refusal

If the articles of association stipulate that when a shareholder dies, other shareholders have the right of first refusal to purchase the shareholder's equity, then the other shareholders can have the first refusal to purchase, and the heirs will not be able to become shareholders of the company.

3. The nominee shareholder denies the nominee shareholding relationship

If the equity is held by another person, after the death of the shareholder, the nominee denies the nominee relationship, and the heir will not be able to become a shareholder of the company if there is no evidence to prove that the deceased shareholder is the actual shareholder.

In order to avoid the occurrence of the above situation, entrepreneurs should prepare the following in advance:

1.Sort out the equity of the company under its name, review the articles of association of each company, and ensure that the inheritance intention can be accurately realized.

2.Clarify the nominee holding relationship in writing, and organize and retain evidence of participation in the company's operation and management, so that you can request a change from a silent shareholder to a prominent shareholder at any time.

3.Through a notarized will, the company's equity, management distribution and debt assumption are clarified to avoid disputes between children and relatives.

4.Comprehensively sort out assets, plan in advance, and isolate risks through insurance, trust and other means to give stable protection to children and relatives.

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