1. Can the equity be transferred after pledge?
After the equity is pledged, it is generally not transferable. After the equity is pledged, it shall generally not be transferred, except with the consent of the pledgee. The proceeds from the transfer of equity have priority to repay the secured creditor's rights. Therefore, after the transfer of the pledged equity, the pledge is eliminated. According to the provisions of Article 443rd of the Civil Law of People's Republic of China (PRC), if the fund share and equity pledge are established and the transfer is restricted, the pledge will be established when the pledge is registered. After the pledge, the fund share and equity shall not be transferred, except that the pledgor and the pledgee agree through consultation.
2. What conditions do equity pledge financing need to meet?
Equity pledge financing must meet the following conditions:
1. Where the equity of a limited liability company is pledged, the pledger and the pledgee shall conclude a written contract and register the pledge with the administrative department for industry and commerce, and the pledge contract shall take effect from the date of registration.
2. Where the equity of a joint stock limited company is pledged, the pledgor and the pledgee shall conclude a written contract and register the pledge with the administrative department for industry and commerce. The pledge contract shall take effect from the date of registration.
3. If the equity pledge of a foreign-invested enterprise is pledged by the equity of a foreign-invested company, the pledge registration can only be handled after the approval of the original company's establishment examination and approval authority.
Three. What are the consequences of invalid company equity transfer?
The consequences of invalid company equity transfer are:
1. Invalid equity transfer agreement has no legal effect from the beginning;
2. The equity acquired by both parties as a result of this agreement shall be returned;
The party at fault should compensate the other party for the losses suffered as a result.
Legal objectivity:
Article 443rd of the Civil Law of People's Republic of China (PRC) pledges the fund share or equity, and the pledge right is established when the pledge registration is handled. After the pledge, the fund share and equity shall not be transferred, except that the pledgor and the pledgee agree through consultation. The pledgor shall pay off the debts in advance to the pledgee or deposit the proceeds from the fund share and equity transfer. Article 444 of the Civil Code of People's Republic of China (PRC) pledges intellectual property rights such as the exclusive right to use a registered trademark, patent right and copyright, and the pledge right is established at the time of pledge registration. After the pledge of property rights in intellectual property rights, the pledgor may not transfer or license others to use them, unless the pledgor and the pledgee agree through consultation. The pledgor shall pay off the debts in advance to the pledgee or deposit the price for transferring or allowing others to use the pledged intellectual property rights.