China Overhauls Takeover Code (2006)

China Overhauls Takeover Code of Listed Companies

China Law & Practice; Hong Kong (Oct 2006): 1.

Abstract

The China Securities Regulatory Commission (CSRC) issued the Acquisition of Listed Companies Administrative Procedures (Takeover Code) on July 31 2006. The Takeover Code became effective as of September 1 2006 and repealed the old procedures (Old Takeover Code), which had been effective since December 1 2002. The Takeover Code unifies provisions under a single piece of legislation, which were previously spread out over numerous circulars and regulations. In addition, this much welcomed piece of housekeeping legislation clarifies rules on partial offers, widens the ‘concerted action’ concept, updates rules on offer exemptions, regulates indirect acquisitions and redefines the role of financial advisers. The Takeover Code requires shareholders to disclose certain information as they increase their stake in the company. The information to be disclosed depends on how the shareholder has increased its stake. The Takeover Code distinguishes between compulsory and voluntary offers. Under the Takeover Code, acquirers not otherwise subject to the obligation to launch an offer can choose between a general or partial offer as a strategy to acquire a listed company.

The China Securities Regulatory Commission (CSRC) issued the Acquisition of Listed Companies Administrative Procedures (Takeover Code) on July 31 2006. The Takeover Code became effective as of September 1 2006 and repealed the old procedures (Old Takeover Code), which had been effective since December 1 2002. The Takeover Code unifies provisions under a single piece of legislation, which were previously spread out over numerous circulars and regulations. In addition, this much welcomed piece of housekeeping legislation clarifies rules on partial offers, widens the ‘concerted action’ concept, updates rules on offer exemptions, regulates indirect acquisitions and redefines the role of financial advisers. The Takeover Code requires shareholders to disclose certain information as they increase their stake in the company. The information to be disclosed depends on how the shareholder has increased its stake. The Takeover Code distinguishes between compulsory and voluntary offers. Under the Takeover Code, acquirers not otherwise subject to the obligation to launch an offer can choose between a general or partial offer as a strategy to acquire a listed company.

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Neither ProQuest nor its licensors make any representations or warranties with respect to the translations. The translations are automatically generated “AS IS” and “AS AVAILABLE” and are not retained in our systems. PROQUEST AND ITS LICENSORS SPECIFICALLY DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES FOR AVAILABILITY, ACCURACY, TIMELINESS, COMPLETENESS, NON-INFRINGMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Your use of the translations is subject to all use restrictions contained in your Electronic Products License Agreement and by using the translation functionality you agree to forgo any and all claims against ProQuest or its licensors for your use of the translation functionality and any output derived there from. Hide full disclaimer Translations powered by LEC.LEC

Copyright Euromoney Institutional Investor PLC Oct 2006

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