Share Buy-back System Of Legal Regulation

Share repurchase is a legal act that stock companies, for a particular purpose, pay cash or other property, directly or indirectly issued to buy back shares of the Company. Share repurchase system, which could help to optimize of capital structure, save tax,resist a hostile takeover and to facilitate financial innovation, is widely used in mature capital markets in the West. Share repurchase system makes an important contribution to the protection of national securities markets. However, because of Share repurchase system doing harm to the doctrine of capital maintenance and the doctrine of shareholder equality and the possibility of insider dealing, both countries establish a strict system of legal regulation to supervise the share repurchase. China's capital market is still in the early stage of development, the financial supervision system is immature, and share repurchases legal regulation system should be strengthened. This article, through analyseing the features and drawbacks of share repurchases and comparing the major countries and regions' legislation on Stock Repurchase Systemthe, pointed out corresponding improvement in the legal view.This article is divided into four chapters:PartⅠ:definition of share repurchases.This chapter discussed the meaning and characteristics of share repurchase, introduced a variety of share repurchase ways, reviewed the development process and the thought evolution.PartⅡ:features and defects of share repurchase system.This chapter analyzes the positive value of share buy-back system and negative effects. Share buy-back system can help to optimization of capital structure, saving tax, preventing the hostile takeover, facilitating financial innovation and other functions. However Share repurchase system does harm to the doctrine of capital maintenance and the doctrine of shareholder equality and causes the insider dealing, Based on the features and defects of the analysis revealed the the importance and necessity of legal regulation of share buy-back systemPartⅢ:legal regulation of share repurchase system. This chapter, through analyzing patterns of national legislation and regulatory experience in the establishment of share repurchases, provides our country legal regulation guidelines, such as China should adopt legislative models to "principle, prohibited, exceptions to allow" mode.PartⅣ:China's share repurchase system development and improvement. This chapter reviewed the development of China's shares repurchase and pointed out corresponding improvement on the conditions, quantities, methods, decision-making procedures.