Discussion On Legislation Of Chinese Corporation Share Repurchase

Share repurchase is an important financial tool in international capital market, as well as a capital manage method and strategy which is often used by corporations. This paper mainly aims at those big listed corporations to whom share repurchase issue has greater influence. China should learn some experience from developed countries(areas) as the imperfect regulations for share repurchase in Chinese legislation may bring risk and uncertainty in practice. Therefore, it is of great importance to learn international experience to establish a new share repurchase legal system which is not only suitable for Chinese situation but also accord with the international usage. This paper explores the legislation for share repurchase with the method of combining history and logic, integrating theory with practice, comparison and practical case.Firstly the paper analyses the definition and characteristics of share repurchase, comparing it with other related conceptions, and the whole paper discusses from this perspective.Then the paper compares the corporation share repurchase practice among different developed countries (areas). There are two kinds of legislation mode in developed countries(areas) : one is the "principled prohibit, exceptional permit" , which is typically in Germany; The other is " principled permit, exceptional prohibit" , which is represented by U.S.. The German mode is...