Protection Of Minority Shareholders During The Share Repurchase

As an important operation strategy of corporation, share repurchase is widely used in American in early seventies of twenties century. Then the American government puts too much control on cash bonus, so lots of American companies use share repurchase to give shareholders cash bonus indirectly to avoid such control. After, share repurchase becomes popular in more countries which have a well developed capital market. Share repurchase has lots of advantages for example, it can adjust company's share structure, avoid hostile acquisition, improve the share price and so on. However, everything has two aspects, share repurchase may brought in lots of disadvantages if abused, especially damage the benefit of minority shareholders. So put necessary and rational control on it is so important to protect minority shareholders.Our country'Law Of Company 1993 dose not admit share repurchase, the revised version 2005 makes so much progress to introduce it, however have too much deficiency. Especially the system of the appraisal right of dissenters which mean so much to the minority shareholders needs perfection.The thesis is composed of five chapters, the main content is as followed:The first chapter defines the boundaries of discussion of this thesis through the analysis of the definition of share repurchase. Then point out the advantages and disadvantages of the share repurchase and how it is to damage the benefit of minority shareholders. Then discuss the necessity and theory basis of protecting the minority shareholders during share repurchase.The second chapter introduce the typical countries of civil law system and common how to protect minority shareholders during share repurchase.The third chapter comment on the relevance regulations on share repurchase of our country and point out the deficiency of the present regulation.The fourth chapter discuss how to improve our country's regulation on protecting the minority shareholders during share repurchase through the analysis of other countries relevance regulation.