As long as the parties reach an agreement on the basis of voluntariness and equality, and the agreement does not harm the interests of others, collectives and the state, and does not violate other mandatory provisions, it is legal and effective.

The agency shareholding agreement is legally binding. There is no dispute between the actual investor and the nominal shareholder, and other shareholders of the company can recognize it if they know it. The written agreement signed by both parties is in full compliance with the legal system.

Equity holding, also known as entrusted shareholding, anonymous investment or false name investment, refers to a kind of equity or share disposal method in which the actual investor agrees with others to perform shareholders' rights and obligations on behalf of the actual investor in the name of the other person.

The situation in which the equity holding agreement is deemed invalid is as follows:

1. One party enters into a contract by means of fraud or coercion, which harms the national interests;

2, malicious collusion, damage the interests of the state, the collective or the third party;

3. Covering up illegal purposes in a legal form;

4, damage the public interests;

5. Violation of mandatory provisions of laws and administrative regulations.

To sum up, the legal effect of the agency agreement is valid, as long as the whole agreement does not violate the mandatory provisions of the law, it will be protected by law. In fact, some shareholders of the company are nominal shareholders. These nominal shareholders are not actual investors, and the actual investors must sign a shareholding agreement with the nominal shareholders because of their identity or other reasons.

Legal basis:

Article 144 of the Civil Code of People's Republic of China (PRC)

A civil juristic act carried out by a person without capacity for civil conduct is invalid.

Article 146

A civil juristic act in which the actor and the counterpart have false meanings is invalid.

The validity of a concealed civil juristic act with false intention shall be handled in accordance with relevant laws and regulations.

Article 153

A civil juristic act that violates the mandatory provisions of laws and administrative regulations is invalid. However, unless mandatory provisions do not invalidate civil legal acts.

A civil legal act that violates public order and good customs is invalid.

Article 154

A civil legal act in which the actor and the counterpart collude maliciously and harm the legitimate rights and interests of others is invalid.