Research On The Legal System Of Share Repurchase Of Limited Liability Companies In My Country

Share repurchase is during the company's operation period,when the shareholders meet certain conditions,based on specific reasons,they may request the company to repurchase the equity held by the shareholders by way of compensation and to leave the company,a legal system that recovers the value of its holdings.The system can adjust the company's capital structure and shareholding structure to meet the needs of its long-term operations,keeping the stability of the company,and protecting the interests of shareholders.In terms of legislation,China's new company law has gradually liberalized the supervision of capital and expanded the autonomy of e nterprises.Compared with the clear legal provisions of joint stock limited companies,the legislation of China's limited liability companies on the equity repurchase system still needs to be improved.In judicial practice,China has not made explicit provisions on the application of the equity repurchase system.The judicial practice is not operative and has failed to fully realize the goal of the equity repurchase system.Earlier national legislation did not agree with the equity repurchase system.Howeve r,in recent years,with the rapid economic growth and the continuous increase in the number of companies,most countries have adopted the attitude about “principle permission,conditions and restrictions” for the equity repurchases system of limited-liability companies.This article analyzes the status quo and problems of equity repurchase system of China's limited liability companies,studies foreign legislation and judicial practice,and draws on advanced legislative experience,hoping to play a role in the development of C hina's limited liability company equity repurchase system.Therefore,based on the analysis of domestic and foreign share repurchase systems,this paper proposes relevant information on the specific circumstances of the share repurchase of limited-liability companies in China about the aspects of applicable subject,scope of application,applicable procedures,determination of repurchase price,and the main body of supervision.We will improve the proposal so that the equity repurchase s ystem of a limited liability company in C hina can be improved and developed.