Equity Research LLC Repo System

Laws about share repurchase in limited liability company couldn’t be found in China until2005. The system of share repurchase, first introduced in the2005, gives the shareholders new path to get away from the company. But the regulation about share repurchase is over simple, it fails to meet the need of the fact and can not practices as it should be.In the daily life, the relationship of economic becomes more and more complex, while the unique characteristics of limited liability company have brought more and more problems. The establishment of share repurchase will resolve the problems, protect the right of dissent shareholders and make the company more efficiency. These are also the signification of share repurchase.This paper is divided into four parts except the foreword and epilogue.Part one:The Overview of the System of Share Repurchase in Limited Liability Company. This part introduces the definition of share repurchase briefly, and discuss the relative theory.Part two:The Current Situation and Disadvantages of Share Repurchase in China. Firstly, we have a overview about the current situation in China, then summarize the problems in detail, lastly, we analyze the necessary of the system of share repurchase.Part three:Comparison of the System of Share Repurchase in Foreign Countries. This part summarizes the experience in Germany and United State, and then analyzes the possibility of using these experiences in China.Part four:Suggestions on the System of Share Repurchase in China. On the one hand, we should improve the substantive law, including make detail regulations about the qualification of shareholders, extend the scope of application and make some necessary restriction. On the other hand, we should improve the procedural of share repurchase, we should make the normal procedural, make the principle of the buying-back price and protect the right of creditor. In these ways, we can improve prefect the system of share repurchase and strike a balance of efficiency and justice.