Research On The System Of Stock Repurchase Of Limited Liability Company In China

With the reform and opening up and the continuous development of the market economy,the company,as an enterprise legal person,plays a very important role in the social development of our country,among which the limited liability company,as an important economic organization,plays its unique value in the market.Limited liability companies have a strong color of human compatibility,so when shareholders want to exit the company,will inevitably cause a certain degree of impact on the company’s human compatibility.According to the provisions of the company law of the People’s Republic of China,after the registered capital of a limited liability company is determined,it shall not be reduced or withdrawn at will without legal procedures.It can be seen that China implements the legal capital system and adheres to the principle of capital enrichment.If the company owns the equity of the company,the capital represented by the equity will be in a virtual position,which violates the principle of capital enrichment of the company.That is,the company’s unlimited repurchase of equity against the principle of capital maintenance and the "company law" to protect the interests of creditors.Article 74 of the company law of the People’s Republic of China only provides the right to request for share repurchase of dissenting shareholders.However,the company law does not make a clear provision on whether to allow limited liability to repurchase shareholders’ shares under other circumstances.This paper tries to make a brief analysis of the share repurchase of the shareholders of the limited liability company in combination with relevant judicial precedents,summarizes the legal problems and problems in the judicial practice of the share repurchase of the limited liability company,and puts forward Suggestions on the improvement of the system.