2. Restrictions on the transfer of shares by promoters.
3. Restrictions on the transfer of shares held by directors, supervisors and senior managers of the company.
4. Restrictions on the company's acquisition of its own shares and acceptance of the company's shares as the pledge target.
Legal basis: People's Republic of China (PRC) Company Law.
Article 138 Shareholders shall transfer their shares in a legally established securities exchange or in other ways prescribed by the State Council. The securities trading places in this paper include the national centralized securities trading system, local securities trading centers and institutions engaged in securities counter trading.
Article 141 The shares of the Company held by promoters shall not be transferred within one year from the date of establishment of the Company. Shares issued before the public offering of shares by the company shall not be transferred within one year from the date of listing and trading of the company's shares on the stock exchange.
Article 141 The directors, supervisors and senior managers of a company shall report to the company the shares held by them and their changes. During their term of office, the shares transferred each year shall not exceed 25% of the total shares held by them, and shall not be transferred within one year from the date of listing and trading of the company's shares. The above-mentioned personnel shall not transfer their shares in the company within six months after leaving the company. The articles of association may make other restrictive provisions on the transfer of shares held by directors, supervisors and senior managers of the company. This restriction, on the one hand, can prevent such people from making illegal profits by using inside information in stock trading, on the other hand, it can link their interests with the operation and management of the company and urge them to try their best to run the company.
Article 142 A company may not purchase its own shares. However, except for one of the following circumstances: "(1) reducing the registered capital of the company; (2) Merging with other companies holding shares of the Company; (3) Rewarding shares to employees of the Company; (4) Shareholders require the company to purchase its shares because they disagree with the resolutions of the shareholders' meeting on the merger and division of the company. Where a company purchases shares of the company due to items (1) to (3) of the preceding paragraph, it shall be decided by the shareholders' meeting. After the company has purchased its shares in accordance with the provisions of the preceding paragraph, in case of any of the circumstances mentioned in Items (2) and (4), it shall cancel within ten days from the date of acquisition and transfer or cancel within six months. The company's purchase of shares of the company in accordance with Item (3) of Paragraph 1 shall not exceed 5% of the total issued shares of the company. The purchased shares shall be paid from the after-tax profits of the company and transferred to the employees within one year. Paragraph 4 stipulates that a company may not accept its own shares as the pledge object. The main reason for restricting the company from buying its own shares is that if the company holds its own shares, it will reduce the company's capital and harm the interests of the company's creditors. If companies are allowed to buy their own shares, it will affect the security of securities trading. It is precisely because this may lead to the reduction of the company's capital that the company is restricted from accepting its shares as the pledge target.