Today, Han Kun Law Offices officially released "Han Kun's Practice Guidelines on Equity Repurchase Disputes" (Second Edition), which is now available on the firm's website.
Han Kun launched the inaugural Han Kun's Practice Guidelines on Equity Repurchase Disputes in 2023, providing analysis and practical answers to highly common and widely discussed issues in equity repurchases.
Redemption exits have become one of the hottest topics in the market amidst mounting pressure on market exit mechanisms and the reshaping of investment logic. This reflects deeper systemic and structural pressures: decreasing risk tolerance among investors and severe challenges to capital liquidity. Also garnering significant attention are issues such as targeted capital reductions under the new Company Law and repurchase exercises discussed in the Supreme People's Court's "Selected Q&A on FADA Online".
In response, Han Kun's Commercial Dispute Resolution team, leveraging cutting-edge market trends and practical experience, officially launched the Guidelines (Second Edition). Notably, based on publicly available data, including investment information and case data, Han Kun has analyzed current repurchase trends to the extent possible. The firm hopes this will provide investors, start-ups, and founding shareholders with a more intuitive legal analysis perspective, offer more forward-looking and actionable legal support, and assist market participants in making more rational business decisions based on a comprehensive understanding of clause meanings and potential risks. Han Kun aims to empower the industry with professionalism and contribute to fostering a favorable business environment.
Key updates in the Guidelines (Second Edition) include:
Data-driven analysis of repurchase issues and trends.
Updates reflecting the impact of the revised Company Law on repurchases.
Added discussion on special requirements for share repurchases involving state-owned enterprises.
Exploration of potential bankruptcy liquidation issues arising from the inability to execute repurchases.
Supplemented discussion on alternative exit mechanisms beyond repurchases.
Click on Han's Kun Practice Guidelines on Equity Repurchase Disputes (Second Edition) to read or download the full PDF version.
