In legal terms, the company's own shares refer to the shares issued by the company after the establishment of a joint stock limited company. Whether a joint stock limited company can hold its own shares varies from country to country, mainly including: (1) allowing a limited company to hold its own shares. The company laws of the Netherlands, Denmark, Austria, Belgium and other countries stipulate that companies are allowed to hold their own shares, but they also stipulate the permitted limits or conditions. Austria stipulates that a company can acquire its own shares, and the amount of holding its own shares shall not exceed 10% of the total share capital, so as to avoid heavy losses for the company. (2) In principle, companies are prohibited from holding their own shares, but exceptions are allowed. The company laws of the United States, France, Sweden, Italy and other countries stipulate that companies may not buy their own shares in principle, but at the same time stipulate that they can hold their own shares under special circumstances. France stipulates that in principle, a company may not buy its own shares, but it may buy its own shares under the following circumstances: cancellation of shares through capital reduction; Distribute shares to employees according to the profit distribution plan; Companies registered in the stock exchange can use their own reserves to purchase their own shares equivalent to less than 10% of their capital under certain restrictions on the payment price. (3) There is no regulation. For example, in Luxembourg, there is no provision on the company's own shares in the law on company legislation. This means that companies in this country can hold their own shares. China also follows the common practice of most countries, and adopts the attitude of "principle prohibition, exception permission" for companies to hold their own shares.

legal ground

Article 71 Shareholders of a limited liability company may transfer all or part of their shares to each other. Shareholders' transfer of equity to persons other than shareholders shall be approved by more than half of other shareholders. Shareholders shall notify other shareholders in writing to agree to the transfer of their shares. If other shareholders fail to reply within 30 days from the date of receiving the written notice, they shall be deemed to have agreed to the transfer. If more than half of the other shareholders do not agree to the transfer, the shareholders who do not agree shall purchase the transferred equity; Do not buy, as agreed to transfer. Under the same conditions, other shareholders have the priority to purchase the equity transferred with the consent of shareholders. If two or more shareholders claim to exercise the preemptive right, their respective purchase proportions shall be determined through consultation; If negotiation fails, the preemptive right shall be exercised in accordance with their respective investment proportions at the time of transfer. Where there are other provisions on equity transfer in the articles of association, such provisions shall prevail. Article 72 When the people's court transfers the shareholder's equity according to the compulsory execution procedure prescribed by law, it shall notify the company and all shareholders, and other shareholders have the preemptive right under the same conditions. Other shareholders who fail to exercise the preemptive right within 20 days from the date of notification by the people's court shall be deemed to have waived the preemptive right. Article 73 Changes in the records of equity transfer After the equity transfer is carried out in accordance with the provisions of Articles 71 and 72 of this Law, the company shall cancel the capital contribution certificate of the original shareholder, issue the capital contribution certificate to the new shareholder, and change the records of shareholders and their capital contribution in the articles of association and the register of shareholders accordingly. There is no need to vote at the shareholders' meeting to amend the Articles of Association this time. Article 74 Under any of the following circumstances, the shareholders who voted against the resolution of the shareholders' meeting may request the company to purchase its equity at a reasonable price: (1) The company has not distributed profits to shareholders for five consecutive years, but the company has made profits for five consecutive years and meets the conditions for distributing profits stipulated in this Law; (2) The merger, division or transfer of the company's main property; (3) Upon the expiration of the business term stipulated in the Articles of Association or other reasons for dissolution stipulated in the Articles of Association, the shareholders' meeting will adopt a resolution to amend the Articles of Association to make the Company survive. If the shareholders and the company fail to reach an equity purchase agreement within 60 days from the date of adoption of the resolution of the general meeting of shareholders, the shareholders may bring a lawsuit to the people's court within 90 days from the date of adoption of the resolution of the general meeting of shareholders.