First, the stock right custody is a civil act that non-listed companies entrust the register of shareholders to the stock right custody institution for management, and it is also a social service to reduce the operating cost of managing the register of shareholders; Its essence is to make up for the shortage of the management of the shareholders' register of unlisted joint-stock companies, and an objective and fair third party will provide the unlisted joint-stock companies with the records of the shareholders' register with publicity and credibility, and provide the shareholders with the valid ownership certificate of their shares.

II. The business scope of equity custody is mainly divided into two categories, namely, equity custody registration business and equity custody service business. The equity custody registration business includes the whole equity custody registration, shareholder equity transfer registration and equity pledge registration of unlisted joint stock limited companies. At the same time, the equity custodian can also provide a series of derivative services related to equity custody, such as distributing dividends to unlisted companies, notifying shareholders to attend shareholders' meetings and other corporate activities, and providing equity inquiry and verification, handling equity freezing procedures, and disclosing relevant information of unlisted companies. Third, the shareholding system is a form of capital organization of modern enterprises. It is conducive to the separation of ownership and management rights, to improving the efficiency of enterprise management and capital operation, to realizing the large-scale expansion of enterprises, to promoting the separation of government from enterprises, to promoting the transformation of enterprise management system, to optimizing resource allocation and to realizing economic restructuring. The free flow of stock rights is a remarkable feature that distinguishes joint-stock enterprises from other enterprises. The equity flow of unlisted joint stock limited company is carried out by endorsement of shareholders' agreement. Due to the lack of special unlisted equity exchange, unlisted equity is generally transferred privately, which makes it difficult for government departments to supervise and deal with disputes from time to time. Especially in the process of transferring state-owned shares, "black-box operation" is easy to occur, which leads to a large loss of state-owned assets and seriously damages the legitimate rights and interests of state-owned shareholders and other investors. After centralized registration and custody of shares, government departments can supervise the equity trading behavior of all unlisted joint-stock companies through custody institutions, standardize equity management, safeguard shareholders' rights and interests, and promote the healthy development of joint-stock economy.

legal ground

According to the Company Law and the Regulations on the Administration of Company Registration, the industrial and commercial departments only initially register joint stock limited companies, and do not change their registration after the transfer of shares.