Traditional Culture Encyclopedia - Hotel franchise - How is the performance stock rooted in hotel cooperation?

How is the performance stock rooted in hotel cooperation?

Performance shares can cooperate with hotels by signing a joint-stock cooperation agreement.

Under normal circumstances, the cooperation between performance shares and hotels should be based on an effective share donation agreement. Performance shareholders who change their shareholders and register with the Industrial and Commercial Bureau become full shareholders and fully enjoy the rights and obligations of shareholders. Performance shares are shares donated by joint-stock companies for free. Generally used as a reward for company sponsors;

Sometimes it is also used to give away employees or attract some influential people. The share delivery must be approved by the board of directors, because it involves shareholders' rights and interests, which leads to the reduction of shareholders' rights and interests.

If the donated dry shares exceed the paid-in capital of the company, diluted shares will be formed, which will reduce the stock price and earnings per share. If the company's retained earnings are converted into dry shares, it is equivalent to converting the retained earnings of shareholders' liabilities into company assets, which will reduce the equity per share and affect the stock market value.

In a word, giving dry shares has a great negative impact on shareholders, but if it can bring benefits to the company's development or overall interests from giving dry shares, shareholders are willing to sacrifice their own vital interests. There are some improper speculation factors, so some countries and regions prohibit it, but the partnership can use labor services instead of capital contribution and accept performance shares. However, it belongs to the organizational form of the company, and it is not allowed to be given in the form of dry shares, but only in the form of monetary contribution. In order to put an end to substantial or disguised water-mixed shares.