How To Improve Our Legal System Of Acquisition

Investors are the foundation of securities business. The degree of protecting their interests determines existence and operation of securities business. Investors'interests are threatened because of the failure of the function of the market. Therefore, protecting investors'interests becomes tenet of securities law. The basic principles and regulations of securities law are formed under this goal.The development of securities business serves a good environment for acquisition. As an important form of capital recombining, acquisition is useful for improving enterprise's management and national economy. Being faced the situation of engaging in foreign market, improving benefits by acquisition becomes an important choice of our enterprise. Acquisition causes conflicts of interests of many parties. Interests of investors who can be delegated by small shareholders of purchased company are easily damaged by tenders and their management. It's especially necessary to protecting their rights. Securities law is the law of protecting investors'rights. Legal system of acquisition as part of securities law should determine rights and liberties of different parties basing on this goal.Development of practice can't be short of guidance of theory. But our legal system of acquisition is not comprehensive enough. Practice of acquisition lacks enough legal dependence and narrow intendance, which gives chance of illegal behavior such as internal bargaining. So the author hopes by conformitying various concrete legal regulations of acquisition and according as three basic principles of acquisition such as principle of publicizing information, treating all shareholders equally, protecting interests of small shareholders, which are embodiments of basic principles of securities law, analyzing the content and legal dependence of measures of protecting investors, and consulting other nations'regulations in order to consummating regulations of our acquisition and making them more enforceable. By building a relatively comprehensive legal system of protecting investors the author makes efforts to accelerate discussing theory of acquisition and regulations.