The behavior of shareholding is very common. The reason for the existence of shareholding is that some investors are inconvenient or unwilling to display it on the company’s shareholder register or the registration authority’s filing documents based on other considerations. So I searched for someone who is trustworthy and willing to serve as a nominal shareholder to hold shares. However, the legal risks of shareholding are objective.

There are many legal risks that may be faced by actual or nominal shareholders. How to avoid it is difficult to generalize, but there are some principles that still need to be observed:
1. Guarantee the shareholding agreement as an effective agreement. If you are not sure, it is recommended to consult a lawyer or related professional;
2. Selecting a person who can be trusted as a partner, you need to consider the credibility of the other party and the way of doing things. For example, the choice of the nominal shareholder does not need to have good financial strength, but the quality of reputation is the primary consideration, followed by whether the liability will occur. Situation, etc., careful choice should be the basic premise of all transactions to avoid legal risks, rather than the setting of contract terms or relief after disputes or troubles;
3. The terms of the shareholding agreement must be carefully considered and tailored. At least the legal risks mentioned above should be reflected in the contract and the reasonable prevention and control provisions should be provided;
4. If the shareholding is more important, you may consider setting up other guarantee measures to ensure that the parties fulfill their respective obligations.