There are risks in increasing capital. If the equity of the company is not assessed fairly, the existing shareholders will be exposed to losses when new shareholders join us. Not to mention the unfair dilution of their share proportions.
If you intend to invest in another company in the form of equity you may also face many risks if no thorough investigation is conducted.
The legal risks in this sort of business activities are mainly negligence of the potentially risky terms in the articles of association, potential litigations (contingence liabilities), etc. Under some circumstances, small shareholders will be “trapped” by a bad investment.
We have designed so many legal documents for our clients from all over the country, so we know where the risks are and can mitigate the risks to the lowest extent possible.