During its development, a technology company established a shareholding structure with numerous small individual shareholders due to employee and executive equity participation.

For historical reasons, these employees did not agree on exit mechanisms when they became shareholders. As a result, when employee shareholders left the company, the majority shareholder could not require them to exit their equity. This led to a situation where former shareholders, who no longer contributed to the company, continued to share in its growth dividends, while the company struggled to incentivize new key employees due to high decision-making costs.

If this situation persists, the company will gradually lose its appeal to top talent, its development momentum will wane, and over time, it may even face management deadlock.

With the company’s net assets growing rapidly year by year, the tax costs of adjusting the equity structure are also increasing. Therefore, an urgent adjustment to the equity structure is imperative.

Our firm has been entrusted to provide specialized legal services for the company’s equity structure design and adjustment. This includes designing an equity structure plan, drafting legal documents for the adjustment, and offering related legal and tax consultation.

We believe that information disclosure, decision-making rules, and exit mechanisms are the "three pillars" of corporate governance. On one hand, they protect the legitimate rights of shareholders, and on the other, they balance the efficiency and fairness of the company’s development.

Leveraging our professional expertise and practical experience, and guided by empirical analysis of judicial cases, we will provide high-quality legal services to our client.