Share Repurchase Legal System

The essay researches the system design which concerns the listing corporation buys back its stocks that have been issued and the essay talks of the problem which emerges in the period of repurchases .Combining the relative stipulation of all countries including our country' s with our national conditions, the writer puts forward some views and suggestios.The preface part of the essay introduces states of affairs of stocks repurchases in and out China. Stocks repurchases is the important financial means and is the capital orpration measure and managemeng tactics of the companies and enterprises abroad. But as for the China' s securities market which is still in a developing stage it is a king of probe and a try for financial initiation. With the new repurchase facts taking place, stocks repurchases has come into our viewing field once more.The first part of my essay is a general introduction about the concept for stocks repurchase, the legislation state abroad and the provisions of our country and it gives a brief account for the practical significance that buying back stocks means for enterprises reform and financial normal run of our country.The second and the third parts are the key points of the essay. The second part researches the arrangement for our country to set up stocks repurchase system, It researches the contents concerning the purpose for buy—back, the quantity for buy—back, the time for buy—back, the way for buy—back, the fund resources and paying way for buy—back and the contents about the way how to deal with the stocks and shares, the liability for illegal buy—back and the information opening for buy—back.The third part talks about the problems which repurchase has brought out and the countermeasures to overcome them. Since stocks repurchase is the repayment for the shareholders' capital contribution, it first encroaches on the creditors' benefits. In addition, because of strong shareholders' and directors' special status, it may encroach on minority shareholders' rights. Moreover, as away of capital run, insider dealing and manipulating share price etc. may take place during the course of buying back. So strict and intact stipulations which are directed against the problems should be given by laws and decrees. And proper supervision in time are needed during the course of enforcing the plan.The fourth part is the conclusion of the essay.