For a limited liability company, since Article 74 of the Company Law is not mandatory, shareholders can sign an agreement with the company to stipulate the conditions for share repurchase. If the Company incorporates the aforementioned agreed conditions into the Articles of Association, the share repurchase clause will take effect. The shares repurchased by the company can be transferred to other shareholders or cancelled.
For a joint stock limited company, due to the mandatory provisions of Article 142 of the Company Law, shareholders may not agree with the company on other repurchase conditions different from those stipulated in Article 142 of the Company Law, otherwise their agreement will be invalid. Therefore, if a shareholder signs an equity repurchase clause with the company, its contents must comply with the provisions of Article 142 of the Company Law. Therefore, the provisions of the share repurchase clause are valid as long as they do not violate the provisions of 142, and are invalid if they are violated.