On Legal Protection of Minority Stockholders' Interests in Stock Repurchase

Stock repurchase, a common capital management scheme in the mature capital market, is still a financial innovation in China. In practicing stock repurchase, minority stockholders' interests are very easy to be infringed by controlling stockholders. Therefore, the principles of equality among stockholders and information disclosure should be observed in the legislation of stock repurchase. Some legal measures before and after the stock repurchase, such as fiduciary duty of controlling stockholders, exclusive voting right and appraisal right of dissenters should be taken to protect the interests of minority stockholders.