Research On The Legal Regulation Of Share Repurc Hase From The Perspective Of Creditor Protection

Since the amendment of the company law on share repurchase passed in October 2018,it has greatly reformed the share buyback system in China,especially for the listed companies.Share repurchase is not only closely related to the interest of the company and part of the shareholders,but also closely related to the interest of company's creditors.No matter whether the shares are cancelled or made other arrangements after repurchase,the company's owner equity will be reduced.Moreover,with the reduction of company's cash and realizable assets,the company's solvency will decline,increasing the risk that creditors cannot be paid.Therefore,the protection of creditors' interest cannot be ignored under the construction of share repurchase.From the perspective of creditor protection,this paper explores the current situation of creditor protection under the share repurchase system,and puts forward suggestions for further improvement with the experience of the specific measures taken by foreign countries to protect creditors.The paper consists of four chapters,the first chapter ?Share repurchase and creditor protection? mainly discusses the relationship between share repurchase and creditor protection.Share repurchase comes with the company's assets flowing to the shareholders,reducing the owner's equity and weakening the company's solvency.Besides,with the reform of the capital system,the function of ?Capital Credit? on creditor protection has been weakened,however,the function of ?Asset Credit? on creditor protection has been recognized.As one of the activities of consuming company's assets,share repurchase should be regulated by law.The core requirement to protect the interest of creditors under share repurchase is to standardize the use of company's assets through system design.The second chapter ?The legislative observation of creditor protection under share repurchase? discusses the regulation of share repurchase mainly through restrictions on purposes with review of changes of share repurchase system at different times.Based on this,the paper further points out that the current regulations on share repurchase are not enough.The inadequacies mainly focus on the limitations of purpose restriction to protect creditors' interest,not regulating the source funds for share repurchase,imperfect repurchase procedures and lack of liability mechanism for illegal repurchase.The third chapter ?The specific measures to protect the creditors during share repurchase under comparative law? mainly discusses the regulations on financial resources of share repurchase?procedures of share repurchase?illegal repurchase effect and liabilities through comparatively research,which provide valuable reference to the further improvements in creditor protection under share repurchase in our country.The fourth chapter ?Improve creditor protection system under share repurchase? is the focus of this paper.Based on the current situations and foreign experience,it purposefully put forward suggestions on how to fully protect creditor's interest under share repurchase.It mainly includes three areas,which consists of improving the regulations on financial resources of share repurchase?procedures and liabilities.It is suggested to introduce the solvency test in regulations on financial resources,refine the procedures of share repurchase and define the effect of illegal buyback and responsibilities of relevant subjects.