What Is The Meaning Of Equity Payment?

Equity is also known as shareholders' rights.

Equity payment refers to the payment paid by the party who buys or exchanges assets in the reorganization of enterprises, in the form of payment of shares and shares of the enterprise or its holding enterprises.

(1) what is the meaning of equity in law?

Equity is the legal ownership of enterprise investors and the rights of investors to enterprises.

Usually, there are several categories of Equity:

1, the right to self-interest and common interest are classified according to the difference of the precedent of equity.

(1) self beneficial right is a right exercised exclusively for the shareholders' own interests, such as the right to distribute dividends and dividends, and the right to claim residual property.

(2) the right to common interest is a right exercised for the interests of shareholders and for the interests of the company, such as the right to vote, the right to convene the shareholders' meeting, the right to invalidation of the resolution of the shareholders' meeting, and the right to request for examination.

2, the separate shareholders' rights and minority shareholders' rights are classified according to whether the exercise of stock rights reaches a certain amount of shares.

(1) individual shareholders' rights are the rights exercised by one shareholder.

(2) minority shareholders' rights can not be exercised without reaching a certain amount of shares, for example, according to the 104th provision of the company law.

3, general shareholders' rights and special shareholders' rights are classified according to the particularity of equity holders.

(1) the right of ordinary shareholders is the right enjoyed by the general shareholders.

(2) the special shareholders' rights are the rights enjoyed by the special shareholders, such as the rights enjoyed by the preferred shareholders.

(3) the seventy-second provision of the company law stipulates that the shareholders of a limited liability company may pfer all or part of their equity between them.

The pfer of shares by shareholders to shareholders other than shareholders shall be agreed by a majority of other shareholders.

Shareholders shall notify other shareholders in writing of their pfer of shares matters for approval. If the other shareholders fail to reply thirty days after receipt of written notice, they shall be deemed to agree to pfer.

If more than half of the other shareholders do not agree to the pfer, the shareholders who disagree should purchase the shares of the pfer; if they do not purchase, they shall be deemed to agree to the pfer.

Under the same conditions, other shareholders have the right of preemption.

If more than two shareholders advocate the exercise of the right of preemption, the proportion of each purchase shall be determined through consultation. If the negotiation fails, the priority purchase right shall be exercised according to the respective capital contribution ratio at the time of pfer.

(two) what are the equity shares that can be incorporated into the consolidated accounting statements identified in the accounting standards?

In accordance with the relevant provisions of the accounting standards for Enterprises No. thirty-third - consolidated financial statements, the subsidiary companies that can be incorporated into the consolidated financial statements shall be determined by whether the parent company can control the invested enterprises.

Control means that an enterprise can decide the financial and operational policies of another enterprise and gain the right to gain benefits from the business activities of another enterprise.

The most important factor is voting right.

When a parent company indirectly owns more than half of the invested units directly or through a subsidiary, it shows that the parent company can control the invested unit, and the invested entity should be identified as a subsidiary.

If the parent company owns half or less of the voting rights of the invested unit, if the parent company satisfies one of the following conditions:

1, through the agreement with other investors of the invested units, they have more than half of the voting rights of the invested units.

2. In accordance with the articles of association or agreement, the company has the right to decide on the financial and operational policies of the invested entity.

3, the right to appoint or remove the majority of the board of directors or similar institutions of the invested unit.

4. The board of directors or similar institutions of the invested units occupy the majority of the voting rights.

If the parent company can control the invested unit, the invested entity should be identified as a subsidiary.

However, there is evidence that the parent company can not control the invested units.

In addition to voting rights, when determining whether or not to control the invested units, the potential voting factors such as convertible convertible Switching Company bonds and warrants that can be exercisable in the current period should be considered by enterprises and other enterprises.

(three) which equity payment is the equity payment referred to in the fiscal and taxation [2009]59 document?

In practical work, professional judgment based on accounting standards requires that financial personnel must grasp a large number of information about investment enterprises and the details of management decisions, while many enterprises' investment decision-making procedures are often not very standardized, and they may lack the proper corporate governance mechanism. Therefore, the State Administration of Taxation has stipulated in the reorganization rules that holding enterprises refer to those directly holding or controlling more than 50% of the shares of the enterprise, that is, the parent company of the enterprise.