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Original equity isn’t a legal term both. Since these arrangements are sometimes made orally, they differ from the concept of hidden shareholders as outlined by company regulation. By common understanding, dry shares refer to shares that current shareholders contribute to others freed from cost. If it is only a written agreement, does it rely as dry equity?

Key Takeaways

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• Second, it’s essential to check the registration standing of those shares (equity) in the articles of association and the commercial and industrial registration.

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