Reform Of Share Repurchase System, Start From Redemption

Redemption is one of the most important rights in the practice of private equityinvestment, which means a lot to the efficiency of invest and protection of investor.Redemption is to be carried out in accordance with the share repurchase system ofCompany Act, however, which leaves little room for doing that in our country. Thelegislative mode of different country are not the same, for example, the legislativemode of American is “Permitted in principal, prohibited for certain exception”, thesame of Germany is the opposite. In recent years, the reform of Japanese CommerceAct and Company Act has loosened the former severe regulation. With respect toTaiwan Province, the mode is similar to the Company Act of PRC. Compared to theadvanced experiences of such countries or districts, our legislative mode is somewhatdefective no matter viewed from the legislative principle or the legislative technology,and needs to be adjusted and improved.This passage is constituted with nearly40thousand characters and5chapters.The main topic of this passage is raised in Chapter1. Firstly, I try to discussabout the redemption and the share repurchase system in the Company Act of PRC,find out the conflict between the before, and then point out the necessity of looseningthe regulation of share repurchase and make room for redemption, by means of discussing what the redemption means to the private equity investment.Chapter2mainly researches the basic theory of share repurchase system. Themotive and economic function has been discussed in this chapter as long as theeconomic meanings of arrange the redemption by means of share repurchase system,and the potential risks of share repurchase system.Different legislative modes of share repurchase system in America, Germany,Japan, and Taiwan Province have been introduced in Chapter3. Besides the detailrules and provisions, I have also made comments and analysis regarding suchlegislative modes and their legislative technologies.The feasibility and methods to loosen the regulations of share repurchase arediscussed in Chapter4. In this chapter, I try to find out the defectiveness of the sharerepurchase system in our country by comparing to such aforesaid countries first, andthen raise some suggestions with respect to occasions, capital source, price,procedures, restrictions, effects and liabilities, etc.Chapter5is the epilogue, in which I make conclusion and introspection to thethought and viewpoints of this passage.