Review on the System of Share Repurchase of Listed Companies under the Background of the New Company Law Amendment

As the operating mode of the company's capital market, share repurchase plays an important role in optimizing the company structure and promoting the scale benefit. In 2018, the company law amended Article 142 of the share repurchase system, mainly focusing on the situation of increasing the share repurchase of listed companies, perfecting the decision-making procedure of share repurchase, establishing the stock system and so on. However, under the current company law, there are still some defects, such as the lack of creditor protection mechanism, the lack of detailed legal responsibility for illegal share repurchases, and the unclear boundary between illegal share repurchases and market manipulation. Therefore, based on the legal basis of share repurchase of listed companies, and drawing on the institutional norms of overseas share repurchase of listed companies, put forward to establish the safe harbor system, strengthen the supervision of stock, clear information disclosure requirements and introduce directors' debt-paying ability statement and other perfect measures, in the hope that the share repurchase system can truly become listed companies to improve the quality of development, promote the building of corporate governance system and corporate governance capacity of the modernization of the firm.