Equity Transfer To Shareholders After The Exercise Of The Preemption Right Research On Anti-repentance Behavior

Article 20 of the Interpretation of the Company Law(4)stipulates that the transferred shareholder may abandon the transfer after other shareholders exercise the preemptive right.While the regulation provides guidance for practice,it also leaves considerable hidden dangers.This paper takes the case of "the equity transfer dispute between Mr.Ma,Mr.Xu and Mr.Jin" as an example to conduct the analysis of the repentance behavior of the transferred shareholders in the equity transfer transaction.First of all,summarize the controversial focus of the case: whether Mr.Ma’s repentance behavior should be supported.Then,on the basis of the current judicial interpretation,case analysis;from the time,it occurred after the fact that the transfer shareholder Ma violated the legitimate rights and interests of other shareholders,so the transfer shareholder Ma should not be allowed to repent.Finally,after the analysis of a sufficient number of cases similar to the sample cases,it can be seen that Article 20 of the Company Law Interpretation(IV)has problems in both theory and practice: the first,the nature of the formation right of the preemptive right;the second,the problem of no restriction and abuse in the application of good faith.Therefore,it may be meaningless to only restrict it.It is recommended to delete article 20 of the Interpretation(4).