Introduction
State-owned legal person shares, also known as state-owned legal person shares, refer to stocks issued by state-owned legal persons established in accordance with the Company Law. State-owned legal person shares are a special kind of company shares, and they are paid in the form of state-owned capital. The holders are the state-owned capital shareholders, and the state-owned assets supervision and administration institution (hereinafter referred to as SASAC) is the shareholder on behalf of the state.
Characteristics of State-Owned Legal Person Shares
(1) Supervision and management. Chinese law stipulates that the SASAC shall exercise the rights and perform the obligations of the shareholders of state-owned legal persons on behalf of the state; it shall organize the enterprises to formulate rules and regulations for the assets supervision and management of state-owned legal persons, and shall supervise and manage the assets of state-owned legal persons in a unified way.
(2) Restriction of transfer. State-owned legal person shares are restricted shares, that is, it is not allowed to transfer the state-owned legal person shares publicly, and the holders of the shares shall not transfer the shares to the non-holders without the consent of the originator.
(3) Property right. The holders of state-owned legal person shares have the right to receive dividends according to their shareholding proportions, the right to participate in the decision-making of the company, the right to receive capital contributions, the right to receive information disclosure, the right to vote, and the right to proposal.
(4) Duties. Holders of state-owned legal person shares have the obligation to abide by the companys articles of association, pay the expenses of the companys registration, the obligations of the state-owned capital shareholders, and the obligations of the SASAC.
(5) Attribute of risk. State-owned legal person shares are stocks of state-owned legal persons, and the price fluctuation of these stocks reflects the condition of the enterprise to a large extent, and the holders of these stocks will bear the risk of the operating condition of the enterprise.
Conclusion
State-owned legal person shares are one of the main forms of Chinas corporate system, and they have their own characteristics of supervision management, restrictions on transfer, attributes of the property right and risk bearing. It is an important device to safeguard the interests of the state-owned assets, reflect the socialist economic nature, ensure the stable and healthy operation of the state-owned assets, maintain the safe operation of the state-owned assets, and promote the development of the market economy.