Repurchase System Research Co., Ltd. Shares

Share repurchase system originated in the United States, all countries in the world to go through a process of from ban to license, now share repurchase system has become the western mature capital markets an important tool of capital operation, in the aspect of optimizing ownership structure has played a positive role in financial leverage; At the same time, the stock repurchase system also has its negative functions, such as conflicts with traditional corporate law principle, easy to cause some negative effect in practice. The capital market in China is still at its early stage and it is obvious that the financial regulatory system needs to be further improved. Non-doubtfully, the share repurchase system is new to the Chinese market and has not been commonly used. Although some provisions have been adopted in the Company Law revised in2005with respect to the stock repurchase of listed companies, the legal framework in China on the share repurchase are imperfect and needs to be further improved compared to those in western countries.At present, the theoretical circle about the definition of share repurchase has broad sense and narrow sense of distinction, this paper discussed the share repurchase is share repurchase in its narrow sense, to buy back shares in the company has outstanding legal actions. Clearly defined in the definition of share repurchase is defined on the basis of this paper is divided into four parts to discuss: First of all, from the legislation and theory level, respectively, the introduction of the concept of share repurchase system, then introduces the historical origin of share repurchase system and the value of the system function. Share repurchase system as a way of capital operation, there are both positive value function, also there is a negative effect.Secondly, this article from the historical evolution of share repurchase system in our country, discusses the system of share repurchase in China has experienced a complete ban, enlightenment, new development three stages, introduces the system of share repurchase in China’s legal status to find out our country legislation and legal blank defects existing in the system of share repurchase.Again, through the three countries the United States, Germany, Japan about the legislative background of share repurchase system and the current legal structure, the author thinks that in advanced countries of share repurchase system legislation localization of the legal system, and more should do when adapted to China’s capital market.Finally, on the basis of the above, respectively, in principle and concrete measures to further improve the system of share repurchase in China.