Can a company buy back its own shares?

Legal analysis: Generally speaking, a company cannot buy back its own shares. Only when the company makes profits for five consecutive years but does not distribute profits to shareholders; In case of special circumstances such as merger, division and transfer of main property, the company can buy back shares only after shareholders raise objections.

Legal basis: Under any of the following circumstances in Article 74 of the Company Law of People's Republic of China (PRC), the dissenting shareholder may request the company to purchase its equity at a reasonable price:

(a) 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 as 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.