{"id":8468,"date":"2025-11-01T13:55:44","date_gmt":"2025-11-01T05:55:44","guid":{"rendered":"https:\/\/fdlaw.com.tw\/?p=8468"},"modified":"2025-11-01T13:55:46","modified_gmt":"2025-11-01T05:55:46","slug":"investor","status":"publish","type":"post","link":"https:\/\/fdlaw.com.tw\/en\/blog\/investor\/","title":{"rendered":"How to navigate the vortex of equity disputes? How to protect shareholders&#039; investment rights? Start by understanding! A professional business lawyer will tell you. (Part 1)"},"content":{"rendered":"<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"382\" height=\"293\" src=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg\" alt=\"\u80a1\u6771\u6295\u8cc7,\u6295\u8cc7\u7cfe\u7d1b,\u80a1\u6771\u6b0a\u76ca,\u516c\u53f8\u6cd5\u5f8b\u5e2b\" class=\"wp-image-8469\" title=\"\" srcset=\"https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg 382w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875-300x230.jpg 300w, https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875-16x12.jpg 16w\" sizes=\"auto, (max-width: 382px) 100vw, 382px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A comprehensive overview of common types of equity disputes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In the world of equity disputes, the sparks of conflict often ignite unexpectedly. Different types of disputes are like hidden reefs, threatening to run aground at any moment. Below, we will unveil the mysteries of common types of equity disputes one by one.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Equity investment disputes<\/strong>Shareholder contributions are the cornerstone of a company&#039;s establishment and operation, but in reality, there are always some discordant notes. Some shareholders fail to contribute the full amount as agreed, like agreeing to build a house together but someone carrying fewer bricks; some shareholders delay their contributions, seriously affecting the company&#039;s cash flow; and some shareholders&#039; contributions are overvalued, seemingly paying a high price but actually being unworthy of the valuation. For example, A, B, and C jointly establish a technology company. A contributes a property as capital, but it is later discovered that the actual value of the property is far lower than the initial appraisal price, which leads to a dispute over equity contribution.<\/li>\n\n\n\n<li><strong>Equity Confirmation Dispute<\/strong>These types of disputes mainly revolve around the determination of shareholder status and the ownership of shares. When disagreements arise regarding shareholder status, it&#039;s like a tug-of-war, with both sides sticking to their own arguments and refusing to yield. Whether it&#039;s actual capital contribution without registration, or registration without actual capital contribution, these situations can all lead to disputes over shareholding confirmation. For example, if Xiao Li actually invests capital in the company&#039;s operations, but his name isn&#039;t on the company&#039;s register, Xiao Li will likely have a dispute with the company or other shareholders to confirm his shareholding.<\/li>\n\n\n\n<li><strong>Equity transfer disputes<\/strong>Equity transfer is a common way to adjust a company&#039;s equity structure, but it also carries many hidden risks. The transferor and transferee may disagree on the transfer price, much like in a sale where the seller asks for a high price while the buyer offers a low one, making it difficult to reach an agreement. There may also be disputes regarding the compliance of the transfer procedures, such as whether they were conducted in accordance with the company&#039;s articles of association and legally prescribed processes. Furthermore, one party may even renege on the agreement and want to withdraw from the transfer. For example, if Xiao Wang and Xiao Zhang sign an equity transfer agreement, and Xiao Wang suddenly feels the price was too low and wants to back out, this would undoubtedly trigger a heated dispute.<\/li>\n\n\n\n<li><strong>Shareholder rights disputes<\/strong>Shareholders enjoy a range of rights within a company, including the right to know, the right to vote, and the right to dividends. However, when these rights are violated, shareholder disputes inevitably arise. A company might refuse shareholders access to financial statements, leaving them completely ignorant of the company&#039;s financial situation; it might deliberately restrict the voting rights of some shareholders during major decisions; or it might distribute less or no dividends to certain shareholders. For example, if a company consistently prevents shareholder Xiao Zhao from accessing its accounts, Xiao Zhao&#039;s right to know is violated, naturally leading to a dispute.<\/li>\n\n\n\n<li><strong>Corporate governance disputes<\/strong>Corporate governance is a core aspect of company operations, and conflicts between shareholders and the board of directors and supervisory board often erupt here. Board decisions that harm shareholder interests, or the supervisory board&#039;s failure to effectively fulfill its oversight responsibilities, can both become triggers for disputes. For example, if the board unilaterally decides to invest in a high-risk project without sufficient shareholder discussion, shareholders may perceive this as harming their interests, leading to conflict.<\/li>\n\n\n\n<li><strong>Disputes over the inheritance of shareholder qualifications<\/strong>When a shareholder passes away, the issue of inheriting their shares arises. Disagreements may arise between the heir and other shareholders regarding whether the heir can directly inherit the shareholder status, or disputes may exist over the valuation of the shares and the allocation of inheritance shares. For example, after Mr. Zhang&#039;s death, his son, Xiao Zhang, claims to inherit the shareholder status, but other shareholders believe that Xiao Zhang lacks the ability to manage the company and disagree with his inheritance, thus triggering a dispute over the inheritance of shareholder status.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">In-depth analysis of the causes of shareholder investment disputes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Equity disputes are not accidental; they often have complex underlying causes, which are like the roots of a tree buried deep underground, intricate and intertwined. Below, we will analyze the causes of equity disputes from multiple perspectives.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Conflict of interest among shareholders<\/strong>Conflicts of interest among shareholders are the core trigger for equity disputes. These conflicts manifest in various forms, with shareholders often holding differing opinions on profit distribution. Some shareholders believe they have invested more capital and made greater contributions to the company, thus deserving a larger share of profits; others feel they have devoted more time and effort to the company&#039;s operations and should receive corresponding rewards. These differing views on profit distribution can easily ignite conflict among shareholders. In company decision-making, the interests of major and minor shareholders can also differ significantly. Major shareholders may focus more on the company&#039;s long-term development strategy and be willing to make large-scale investments and expansions; while minor shareholders may prioritize immediate gains, worrying about the risks of large-scale investments and their impact on their returns. For example, a company plans to invest in a new project. Major shareholders believe the project has broad prospects and can bring huge development opportunities to the company, strongly advocating for its implementation; however, minor shareholders believe the project is too risky, and failure would result in significant losses for the company, therefore firmly opposing it. The stalemate escalates, and the conflict eventually leads to an equity dispute.<\/li>\n\n\n\n<li><strong>Unreasonable equity structure<\/strong>The equity structure is like the skeleton of a company. A reasonable equity structure can support the healthy and stable development of the company, while an unreasonable equity structure can become a stumbling block to its development. An overly even shareholding ratio is a common problem. In some companies, the shareholding ratios of shareholders are almost the same, with no clear distinction between large and small shareholders. In this situation, it is often difficult to reach a consensus on company decisions, easily leading to shareholder deadlock. For example, A and B jointly founded a company, each holding 50% shares. During the company&#039;s operation, A and B disagreed on the company&#039;s development direction. Because their shareholding ratios were the same, neither could convince the other, leading to a deadlock in company decision-making and hindering normal business operations. Excessive concentration of equity also has drawbacks. When company equity is excessively concentrated in the hands of a few large shareholders, these shareholders may abuse their control and ignore the interests of small shareholders. Large shareholders may misappropriate company funds for personal investment or seek personal gain in related-party transactions, harming the rights of small shareholders.<\/li>\n\n\n\n<li><strong>The equity transfer agreement is not standardized.<\/strong>A share transfer agreement is a crucial document for share transfers. An improperly drafted agreement is like a ticking time bomb, potentially triggering disputes at any moment. Inappropriate agreements are common; some share transfers are based solely on verbal agreements without a written contract. In the event of a dispute, both parties often have conflicting accounts, making it difficult to determine the specific details of the transfer and the rights and obligations of both parties. For example, A and B verbally agree that A will transfer his\/her company shares to B, but no written agreement is signed. Later, A reneges and refuses to transfer the shares, while B believes that both parties have reached an agreement and demands that A fulfill the agreement. Without a written agreement as evidence, the two parties are embroiled in a dispute. The illegality or invalidity of the agreement&#039;s content is also a serious issue. If the content of the share transfer agreement violates mandatory provisions of laws and regulations, or involves fraud, coercion, or other illegal activities, the agreement may be deemed invalid. For example, C and D sign a share transfer agreement. To gain more profit, C deliberately conceals the fact that the company has significant debts, and D, unaware of this, signs the agreement. Later, D discovers the company&#039;s debt problems, believes C committed fraud, and demands the rescission of the share transfer agreement, leading to a dispute.<\/li>\n\n\n\n<li><strong>Company establishment irregular<\/strong>Company establishment is the starting point for a company&#039;s development. Irregularities at this stage can easily sow the seeds for future equity disputes. Using nominee shareholders is a common irregularity. Some companies use nominee shareholders to meet shareholder number requirements or to evade legal responsibility. These nominee shareholders do not actually participate in the company&#039;s management or enjoy the actual rights of shareholders, but are legally registered as shareholders. If the company encounters problems, disputes may arise between the actual investors and the nominee shareholders. For example, E and F jointly invest in establishing a company, but to meet the shareholder number requirement, E finds G to be a nominee shareholder. Later, when the company is profitable, G demands to participate in profit sharing as a shareholder, while E argues that G is merely a nominee shareholder and should not have profit sharing rights, leading to a dispute. False capital contributions during company establishment are also a serious problem. Some shareholders, in order to fraudulently obtain company registration, will overstate their capital contributions or withdraw their capital after verification. This behavior not only harms the interests of the company and other shareholders but may also lead to an unclear equity structure and trigger equity disputes. For example, H, I, and J jointly establish a company. H falsely reports his capital contribution and then withdraws it after verification. Later, when the company encounters difficulties, I and J discover H&#039;s false capital contribution and demand that H make up the shortfall. However, H refuses to fulfill his obligation, leading to a dispute between the two parties.<\/li>\n<\/ul>\n\n\n<p class=\"has-medium-font-size\">Fuda Law Firm<br \/>Line\uff1a<a href=\"https:\/\/line.me\/ti\/p\/@fdlaw\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/line.me\/ti\/p\/@fdlaw<\/a><br \/>Tel:<a href=\"tel: 886277093611\" target=\"_blank\" rel=\"noreferrer noopener\">0277093611<\/a><br \/>Facebook:<a href=\"https:\/\/www.facebook.com\/fudalawyer\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.facebook.com\/fudalawyer<\/a><br \/>website:<a href=\"https:\/\/fdlaw.com.tw\/en\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/fdlaw.com.tw\/<\/a><br \/>e-mail:<a href=\"mailto:info@fdlaw.com.tw\" target=\"_blank\" rel=\"noreferrer noopener\">info@fdlaw.com.tw<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>A Comprehensive Overview of Common Equity Disputes: In the world of equity, sparks of conflict often ignite unexpectedly. Different types of disputes are like hidden reefs, ready to erupt at any moment\u2026<\/p>","protected":false},"author":1,"featured_media":8469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","footnotes":""},"categories":[69],"tags":[509],"class_list":["post-8468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-counsel","tag-509"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"qubely_featured_image_url":{"full":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"landscape":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"portraits":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"thumbnail":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875-150x150.jpg",150,150,true],"medium":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875-300x230.jpg",300,230,true],"medium_large":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"large":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"1536x1536":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"2048x2048":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"trp-custom-language-flag":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875-16x12.jpg",16,12,true],"qubely_landscape":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"qubely_portrait":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875.jpg",382,293,false],"qubely_thumbnail":["https:\/\/fdlaw.com.tw\/wp-content\/uploads\/2025\/11\/messageImage_1761976318875-140x100.jpg",140,100,true]},"qubely_author":{"display_name":"\u53f0\u5317\u5f8b\u5e2b\u63a8\u85a6","author_link":"https:\/\/fdlaw.com.tw\/en\/author\/admin\/"},"qubely_comment":0,"qubely_category":"<a href=\"https:\/\/fdlaw.com.tw\/en\/blog\/category\/legal-counsel\/\" rel=\"category tag\">\u516c\u53f8\u6cd5\u5f8b\u9867\u554f<\/a>","qubely_excerpt":"\u5e38\u898b\u80a1\u6b0a\u722d\u8b70\u985e\u578b\u5927\u76e4\u9ede \u5728\u80a1\u6b0a\u4e16\u754c\u4e2d\uff0c\u7d1b\u722d\u7684\u706b\u82d7\u5e38\u5e38\u5728\u4e0d\u7d93\u610f\u9593\u71c3\u8d77\uff0c\u4e0d\u540c\u985e\u578b\u7684\u722d\u8b70\u5982\u540c\u96b1\u85cf\u5728\u6697\u8655\u7684\u7901\u77f3\uff0c\u96a8\u6642\u53ef&hellip;","_links":{"self":[{"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/posts\/8468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/comments?post=8468"}],"version-history":[{"count":2,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/posts\/8468\/revisions"}],"predecessor-version":[{"id":8471,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/posts\/8468\/revisions\/8471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/media\/8469"}],"wp:attachment":[{"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/media?parent=8468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/categories?post=8468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fdlaw.com.tw\/en\/wp-json\/wp\/v2\/tags?post=8468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}