Research On The Legal Issues Of Stock Pledge Repurchase

Stock pledged repurchase is an important mode of financing,which conforms to the characteristics of security rights subsidiarity,complementary and guarantees the real realization of creditor's rights.But it is different from the typical security right in the realization form,so its essence is atypical guarantee.The establishment of stock pledge repurchase right requires both parties to sign a written contract and make it public announcement.The stock pledged repurchase business agreement is a commercial contract?Commercial judgment thinking should be adopted in the determination of its validity Regarding the method of publicity,the relevant provisions on stock pledges are followed,and the pledge rights are established when the pledge registration is completed.In the stock pledged repo transaction,both the borrower and the lender are obliged to disclose information.In addition,the borrower is also obligated to supplement the collateral.When the borrower touches the breach of contract,the lender has the right to force liquidation,and can decide the time and quantity of liquidation by itself.For the free stock with unlimited sale condition,the securities company can forcibly close its position on the pledged securities through the trading system to realize the pledge right.When the major shareholders and the director of the board of directors have a default situation,they can choose to apply for property preservation before litigation to the court in addition to declaring the disposal of default,so as to prevent other creditors to freeze.The pledgor can obtain the liquidity fund and return the financing fund and interest through the agreement to transfer the stock.When the default clause is reached during the restricted sale period,the pledgee may request the court to auction the restricted sale shares,and the proceeds from the auction of the restricted sale shares shall be paid in priority.After the successful auction,the buyer has all the rights and interests in the stock,and is also subject to the restriction period.The court shall have the priority to repay the proceeds from the auction to the financing party and lift the pledge of restricted shares.If there is any remaining money to be returned to the merging party,the insufficiency shall be paid by the merging party.The financing parties can also choose to perform compulsory notarization of the signed business agreement.In case of default,the pledgee shall apply to the notary office for an execution certificate,and apply to the court for compulsory execution of the pledged restricted share by holding the execution certificate.