Why does the CPA Economic Law say that listed companies buy stocks themselves to withdraw funds?

It is a repurchase behavior for a listed company to buy its own shares. In China, this kind of behavior is very easy to be identified as withdrawing funds, except in rare cases.

According to the Company Law, shares can be repurchased as follows

1. Reduce the registered capital of the company;

2. Merge with other companies holding shares of the Company;

3. Reward shares to employees of the company;

4. Shareholders ask the company to buy their shares because they disagree with the resolution of merger or division made by the shareholders' meeting.

The Company Law stipulates that the above-mentioned 1 case shall be cancelled within 10 days from the date of re-acquisition; The second and fourth cases should be transferred or revoked within six months; In the third case, the stock repurchased by employees does not exceed 5% of the company's total share capital and is transferred to employees within one year.

In other words, the company cannot hold the repurchased shares for a long time.

Regardless of the purpose of repurchasing shares (including cancellation of capital), listed companies shall disclose the repurchase report and submit an application for repurchasing shares to the CSRC.

Well, tell me about the purpose of your repurchase ~

If the CSRC doesn't send you an objection letter, I'll call you uncle. ...

Well, suppose you say that the stock repurchase is cancelled and the CSRC is blind, then the possibility of passing is slightly greater than zero.

According to the Stock Listing Rules and Securities Law of Shanghai and Shenzhen Stock Exchanges:

The publicly issued shares account for more than 25% of the total shares of the company; If the company's total share capital exceeds 400 million yuan, the proportion of publicly issued shares exceeds10%;

The company repurchases a certain proportion of tradable shares, and those who are not qualified for listing will be delisted. .....

The remaining tradable shares after delisting, if confiscated, will continue to be collected in the Third Board.

After receiving the restricted shares, those shareholders will be lifted, and then! Go on! Take it!

Wait! The purpose of repurchase in the repurchase report is not to say that it will be used for cancellation!

The promise of a listed company has legal effect even if you withdraw from the market!

That can only cancel the shares. ...

Then, when the registered capital is less than 500w, it loses the qualification of a joint stock limited company. ..

I wonder what will happen next. ..

To put it simply: if a company buys its own shares in order to sell them at a higher price (without cancellation), it is suspected of stock price manipulation, which is illegal. In American law, this kind of repurchase will be declared invalid, while in China law, it may be sentenced to the crime of withdrawing capital contribution, and may enter bankruptcy proceedings, and creditors may exercise the right of bankruptcy cancellation.