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Equity Legal Services

From company incorporation to IPO, from equity incentives to wealth succession, Lawyer Luo Wei and his team provide in-depth legal solutions covering the full lifecycle of equity.

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Equity Structure Design

The legal foundation of corporate architecture. From partner selection, equity ratio determination, dynamic equity mechanisms to control rights protection — building a scientifically sound equity structure system for enterprises.

Control Design Dual-Class Shares Pyramid Structure LP Holding
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Equity Incentives (ESOP)

Transform key talent from "labor cost" to "human capital." Covers phantom shares, virtual equity, stock options and other tools — customized incentive plans for each enterprise.

Stock Options Virtual Equity TUP Plan Exit Mechanism
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Equity Financing

From angel rounds to Pre-IPO, assisting enterprises in safeguarding control rights during financing, comprehensively reviewing investment terms, and preventing VAM risks.

VAM Valuation Preference Rights Redemption
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Corporate Governance & Risk Prevention

Comprehensive identification and prevention of equity legal risks: registered capital risk isolation, legal representative liability avoidance, company seal control, board control, non-compete prevention.

Risk Isolation Articles Nominee Risk Liability
05

Equity Tax Planning

Under the Golden Tax System Phase IV, achieving lawful tax optimization through choice of business entity form, equity structure tiering, and reasonable utilization of tax incentives.

Corporate Tax Individual Tax Deemed Collection Cross-Border
06

Divorce & Equity Protection

Marital changes are a major risk for loss of corporate control. Through prenuptial/postnuptial agreements, family company structures, and trust arrangements, protect enterprises from the impact of divorce.

Prenuptial Tudou Clause Family Co Equity Division
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Equity Dispute Resolution

Representing clients in shareholder contribution disputes, equity transfer disputes, corporate resolution validity disputes, control contests and other equity litigation and arbitration — defending shareholders' lawful rights through legal means.

Derivative Action Control Contest Inspection Rights Compulsory Dividend
17+
Years of Practice
10+
Countries & Regions
¥40B+
Total Amount in Dispute
76
Legal Research Chapters
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Complete Knowledge System

Below are seven systematic research works by Lawyer Luo Wei in the field of equity law, covering 76 chapters. Each chapter is independently accessible — expand the directory and select a chapter to read in depth. All content is derived from real case experience and in-depth legal research.

Impact of Divorce on Corporate Control & Legal Prevention

8 Ch

Legal Analysis of Tax Planning in Equity Structures

5 Ch

Legal Principles & Practice of Equity Structure Design

17 Ch

Equity Legal Risks & Corporate Governance Legal Practice

18 Ch

Legal Framework & Practical Operation of Equity Incentives

14 Ch

Legal Analysis of Classic Equity Dispute Cases

9 Ch

Legal Framework & Risk Prevention in Equity Financing

5 Ch
7 Legal Research Topics · 76 Chapters · For general reference only, not legal advice
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Professional Insights

The following key insights are distilled from Lawyer Luo Wei's 17 years of equity law practice.

Core Principle

Control Rights Matter More Than Equity Percentage

The true measure of corporate value lies not in how many shares you own, but in whether you hold control. The average controlling shareholder of Chinese listed companies holds only 20%-30%, and founders of top global companies often hold less than 10% — yet maintain firm control.

💡 Through dual-class shares, pyramid structures, limited partnership platforms, concert party agreements, and special provisions in articles of association, effective control can be maintained even with a relatively low equity percentage.
Institutional Design

Dynamic Equity: Keeping Contribution and Reward Aligned

Constraining dynamic partner contributions with static equity ratios is the root cause of partner conflicts. The split between Luo Zhenyu and Shen Yin of Luojiswei profoundly illustrates the necessity of dynamic adjustment.

💡 Establish a results-oriented dynamic equity adjustment mechanism, regularly evaluate the match between contribution value and equity ratio, and make timely adjustments through capital increases, transfers, and options.
Risk Prevention

Two-Tier Equity Structure: Isolating Business Risk from Family Assets

Under the subscribed capital system, shareholders who subscribe to large amounts of registered capital without actually contributing face unexpected personal debt risks.

💡 Do not register operating companies directly under your personal ID; instead, hold shares indirectly through a firewall company to achieve the triple objectives of risk isolation, control amplification, and tax savings.
Incentive Philosophy

The Core of Equity Incentives Is Interest Alignment

Performance evaluation addresses "doing one's best"; equity incentives ignite "going all out." The success of Huawei's TUP plan demonstrates the importance of continuously activating internal motivation.

💡 Equity incentives should be "additive" rather than "subtractive" — issue new shares rather than carve up existing ones. Incentive returns need to reach 20%+ to have significant effect.
Marital Risk

Marital Changes: The Silent Killer of Corporate Control

Zhen Gongfu, Tudou, Ganji — in all three cases where founder marital disputes blocked IPOs, Capital Today appeared. The "Tudou Clause" has become standard in investment agreements.

💡 Prenuptial/postnuptial agreements, indirect shareholding through family companies, special provisions in articles of association — five or more legal tools can be used in combination.
Financing Traps

Risk Review of 18 Core Equity Financing Terms

Valuation Adjustment Mechanisms (VAMs) are "standard equipment" in Chinese equity investment, but they conceal significant legal risks.

💡 The Supreme Court's Haifu Investment case established the VAM principle: "VAMs with the company are invalid; VAMs with shareholders are valid" — profoundly influencing the legal architecture of VAM clauses.