With regard to the division of divorce companies, in practice, there are several ways to divide the equity:
1. Direct Transfer. If the above decoration company is a limited liability company and the husband and wife who share the shares are not shareholders of the company, they can refer to the method of transfer of capital contribution by shareholders to persons other than shareholders. According to the Company Law, the following conditions must be met:
(1) The convening of a shareholders' meeting must be approved by more than half of all shareholders;
(2) Shareholders who do not agree to the transfer shall purchase the capital contribution to be transferred. If they do not agree to purchase the capital contribution to be transferred, they are deemed to agree to the transfer;
(3) The husband and wife, as the transferee, must meet the conditions specified in the articles of association for being a shareholder.
2. Price compensation. That is, after the discount of the shares that one of the shareholding couples should divide to the other party, they will pay the other party in currency, and all the equity will still belong to the original shareholder. If the shares of a limited liability company are held, in order to reflect the principle of fairness and justice in the division, only an intermediary agency is entrusted to audit the company's creditor's rights, debts and net assets, and the shares held by one of the shareholding couples are evaluated.
3. Auction segmentation. If they hold shares of a limited liability company, and both husband and wife are unwilling to continue to hold the shares, they can auction them and then split them. Such auction is conducted in accordance with the provisions of Article 35 of the Company Law, and the original shareholders will be notified to participate in the auction as bidders. If no shareholders participate in the auction, or the participating shareholders cannot buy, then each shareholder will not have priority over the auction or transaction price. The price of the auction shall be divided equally between the husband and wife.
Article 35 of the Company Law states that "when a shareholder transfers his or her capital contribution to a third person other than a shareholder, he or she must obtain the consent of more than half of all shareholders; the shareholder who does not agree to the transfer shall purchase the capital contribution to be transferred, and if he or she does not purchase the capital contribution to be transferred, he or she shall be deemed to agree to the transfer".
