CASE STUDY | The Stock Buy-back Shall Be Chosen with Extra Caution

2018年上海金英律师事务所代理某股份有限公司成功办理一起“请求公司收购公司股份”纠纷案。案件起因为2016年股份公司定增时投资人吴某投资100多万购买公司股份，为规避投资风险与股份公司签署回购协议。后因股份公司业绩不达标，投资人吴某向股份公司提出回购要求。

In 2018, SUMMIT was retained by a joint-stock company who was sued for stock buy-back. The origin of the case was that Wu, an investor, spent more than RMB 1 million to buy the stock of the company in 2016. To avoid the risk, Wu also signed an Agreement for the stock buy-back with the company. Wu requested the stock buy-back later when she figured that the company was in default of the Agreement.

本案开庭审理时，“金英”的承办律师凭借深厚的法律功底，在辨析股份回购内涵的基础上，进一步剖析公司法的立法精神，认为系争“合意”股份回购因为不符合公司法关于股份回购的法律规定及立法精神，损害公司和债权人利益，应属无效。

While the case was considered in the court, experienced Summit’s team analyzed the legislative spirits of the “Company Law” on basis of the intension of stock buy-back. The clauses of the stock buy-back in the Agreement shall be invalid due to lack of legal legitimacy and contradicting legislative spirits of stock buy-back in laws. The illegal stock buy-back would also jeopardize the company and creditors.

所谓股份回购，是指公司在符合一定条件及程序的情况下，由公司将发行在外的本公司股份全部或部分购回的行为。我国的有关法律对股份回购的行为进行了严格限制，仅在符合法律规定的情况下允许进行股份回购。投资人在投资退出方式中应谨慎选用。

Stock buy-back is a business conduct that a joint-stock company repurchases all or parts of its issued stocks under certain conditions and procedures. It is strictly regulated and limited by the relative Chinese laws. The stock buy-back is permitted under the conditions regulated by the law only. Thus, the stock buy-back shall be chosen with extra caution.

因胜诉无望，本案投资人吴某向法院提出撤诉，法院经审查，裁定准许原告撤回起诉，本案的诉讼费用由原告方承担。这起涉案金额高达上百万元的股份回购纠纷案件以原告方主动撤诉而告终。

Taking into account that judgement would not be in favor of the investor, Wu withdrew the law suit and the judge granted her withdrawal after the investigation. The stock buy-back case, valued more than 1 million, ended up with the withdrawal of the plaintiff.

“金英”提示：投资有风险，“金英”为您提供最专业的法律服务。

SUMMIT TIP: Investments carry risk. SUMMIT provides the trusted and professional legal services for you.