This paper focuses on the structure of the legal effects of illegal stock repurchases, with particular emphasis on the relevant Civil Code provisions and the most recent amendment to the Corporation Law. We conclude that firstly, no provision regarding legal effect can be structured in a manner which balances the pros and cons of stock repurchase bans, for they purposes are in contradiction with each other. Secondly, the Civil Code fails to bridge the gap left by the Corporation Law. Literal application of the Civil Code regulations, in the case of illegal stock repurchases, may lead to inequitable, undesirable results. Lastly, there is a large chasm between legal theories and enforcement, indicating that serious problems exist in the structure of the ban on stock repurchases.