Share Buy-back System To Study

Share repurchase means that the company repurchases its own stock at certain price, brought by some of the shareholder by using capital with sovereign right or financing of debt This part of stock is used as treasury stock or is canceled, so the money is reduced or the structure so the capital stock is adjusted. Because of its advantage, this system is adopted by the "company law" of our country. However, it has its own disadvantages. Additionally, relative prescriptions of the newly established law of our country are not perfect. This system may be the yoke of improving company's administration structure of our country. Therefore, according to the practice of our country, this system should be fully stated to provide some useful advice to the stock repurchase system of our country, by using the reference of legislation of foreign countries.The first part: the concept and features of stock repurchase. In this part, the concept of stock repurchase is explained at first Three features of stock repurchase are also listed.The second part: the necessity of stock repurchase and some of the questions that need attention. In this part, the necessity of stock repurchase is analyzed. It is mentioned that the minority stock holders' and the creditors' interest should be protected, which would influence the stability of capital market and misguide investment These disadvantages should be avoided in practice.The third part: analysis of the situation and reasons of legislation of stock repurchase in every country. In this part, the stock repurchase system legislation in America, Germany, France, Taiwan, mainland China and etc. are compared, the legislative reason and legislative basis are analyzed, and the legislative principle of our country is proposed.The forth part: the analysis of real example and legal structure of our country's stock repurchase. In this part, stock repurchase cases of early time and now are compared and analyzed. It is shown that, in the stock repurchase system, temporary effect should not be obtained by giving temporary relief. The legislative evolution of this system of our country is explained too.