Mr Zhang, Mr Liu, Mr Guan, Ms Zhao and Ms Wang were the shareholders of a limited liability company with a registered capital of RMB 200,000 yuan, and each one held 20% of the equity of the company.Mr Liu was intending to transfer his equity to a private enterprise and sent a written notice to the other four shareholders to ask for their consent. Mr Zhang and Ms Zhao agreed with the transaction and also expressed their willingness to buy Mr Liu’s equity if the price were reasonable. However, they could not reach an agreement as to the proportion of equity to buy.Mr Guan was against the transaction and claimed his right of priority to buy the equity of Mr Liu. Ms Wang did not respond immediately upon receiving the notice. Then, two months later, she expressed her disagreement with the transaction between Mr Liu and the private enterprise.Since the price offered by Mr Guan was lower than that of the private enterprise, Mr Liu finally signed the equity transfer agreement with the private enterprise. This transaction caused disputes among the shareholders of the company. Under such circumstances Mr Guan decided to leave the company and requested the company to purchase his equity.Required:Answer the following questions in accordance with the relevant provisions of the Company Law of China and give your reasons for your answers:

(c) State whether Mr Liu was entitled to transfer his equity to the private enterprise. (4 marks)