Effectiveness of Mandatory Share Repurchase Provisions Research

Abstract

The compulsory share repurchase provision of the Company Law only provides for the share repurchase of dissenting shareholders, but does not make systematic arrangements for other share repurchase situations, which has led to frequent contradictions in the application of the law in judicial practice. The existing Company Law does not make specific provisions for the repurchase of the company's statutory initiative, nor does it make legal regulations for the repurchase of the shares agreed in the articles of association and agreement. The legislation should not prohibit the repurchase of equity in the limited liability company, and only set the conditions for not allowing the repurchase of equity can be. Through the institutionalized and systematic arrangement of the resolution authority, notification obligation and disposal of repurchased equity, a systematic and complete repurchase system is constructed. For the determination of the validity of the equity repurchase agreement, the three aspects of contractual rules, shareholders' meeting voting and operating conditions should be grasped comprehensively.