How Do Natural Persons And Companies Invest Together?

Q: I am working with several friends A, B, C and D to form a limited company G. There is a company X is ready to participate in the investment. Now there are two ways. Can you help me analyze the difference? 1. All investment individuals A, B, C, D as natural persons plus investment companies are all shareholders of the company.

All shareholders of the board will participate.

2, several of our natural persons (A, B, C, D) set up a new company F, then set up a limited company G with the new company F and company X, and several of our natural persons are shareholders of F company.

In the first way, I am one of the shareholders of F company. I take the corresponding responsibility to enjoy the corresponding rights. In the second way, I have no direct relationship with G of the company. I have no decision-making power. I can only get the investment return from my company's F company according to the internal agreement of G company.

Is it possible that the loss of return on investment obtained from G is due to the loss of other F projects.

Please help me analyze it, thank you!

Answer: adopt different models to reflect investors' different considerations.

If you follow the first option, you will be able to control the company or influence the company's decision making as a shareholder of F company.

If you follow the second option, you have indirect shareholding relationship with G company. You can only influence G company by dominating F company. The size of the influence on the latter will depend on your control over F company and the degree of solidarity between you and other shareholders and F company's shareholding for G company.

The second procedure is cumbersome and the process is long. It can not directly affect the operation and management of G company, and the return on investment may also be affected.

From a business point of view: if G company and F company's main business is the same, take the first way, so that you have a certain impact on F company, and the future returns may be satisfied with yourself. If F company jointly established by G company and X company is developing new business projects, or adopting second methods is more appropriate.