Analysis of System of Share Repurchase

Share Repurchase, a common capital management scheme in those mature capital markets of foreign countries, is still a financial innovation in China. Share repurchase is aimed at adjusting the structure of share rights of listed firms, carrying out ESOP, protecting minority shareholders with dissenting opinions and promoting substantial annexation. In practicing share repurchase, minority shareholders' rights are very easy to be encroached on. Therefore, the principles of substantial equality among shareholders and protection of creditors' interests should be observed in the legislation of share repurchase. Besides, the essay puts forward six proposals on how to perfect the system of share repurchase.