Expand knowledge: proxy agreement refers to the entrustment agreement that shareholders hold shares and enjoy equity. There are many reasons for the emergence of proxy shareholding, which may be that the real investors are unwilling to disclose their identities, or they find others to hold shares on their behalf in order to avoid business related transactions, or to avoid the restrictions of national laws on the upper limit of shareholding in some industries, or some companies have special requirements for shareholder identity. However, for whatever purpose, holding shares on behalf of the principal will inevitably form a shareholding agreement between the principal and the trustee. There are certain legal risks in signing the shareholding agreement.