Legal Regulations On The Negative Effects Of Listed Companies Purchasing

The term of listed company is growing popular among ordinary individuals, and as it is entitled to undertake financing activities due to its listed qualifications,which a limited joint stock company will obtain through strict examining and approving procedure , listed companies are now becoming the goal after which purchasers are competing in going. In the US, since the expansion of hostile purchasing for the large listed companies in the late 60's of 20th century, the evaluation of the advantages and disadvantages of such purchasing has been the focal point of the public concern. Company purchasing in the view of critics is the"world of competition,violence and greed",which is the raid towards those gigantic enterprises implemented cruelly, fiercely and violently by a swarm of chargers, disturbers, hunters and barbarians subjected to the"beast spirit"; on the contrary,favorers believe that company purchasing will substantively benefit the shareholders of both sides and bring profitable increase.These two trenchant viewpoints are in sharp opposition. The issue of valuation on listed company purchasing has become a long-standing controversial theoretical matter , simultaneously a profound matter of practicality. But the different understanding between decision-makers and legislators on this matter represents and reflects their respective orientation and standard of value,affecting the constitution of policy and the legal regulations. Here the concrete legal regulations company purchasing of our country are exemplified to analyze the defect.This article is altogether divided into four parts:At the beginning of the first chapter is the defined concept of the company purchasing,which can be briefly defined as:the dealing for an investor of purchasing negotiable securities with voting power from the shareholder in the legal proceedings,aiming to obtain or strengthen the control of a listed company. Terms like consolidation,merger,purchase, merger and acquisition of enterprises frequently occur in this article,which are interrelated and yet distinct. By way of comparing,the interrelation and the distinction between these terms are identified, so as to conclude the legal features of listed company purchasing. And this is for the content of basic theory.The second chapter main introduces the basic principle of company purchasing,namely the equal treatment principle,the open information principle and the protection of the minor shareholders'benefit principle. While introducing the basic principles,defects of the legislation in our country are also mentioned in this part.The third chapter is about the analysis of advantages and disadvantages of company purchasing,mainly introducing the different viewpoints towards company purchases. There are many more advantages in company purchases than disadvantages,and more benefits than defects. From the macroscopic angle, there should be no denying that listed company purchases are the inevitable reflection of the competition in commodity economy embodying as the jungle law and survival of the fittest,and that it is the reflection of the demand of efficiently distributing the resources and optimumly combining the producing factors as well; from the microscopic angle,the motivation of company purchases is the enterprises'nature of pursuing maximum benefit; from the angle of purchaser,the motivation based on the pursue of economies of scale benefit,seeking the higher market share,the disperser management risk,realization experience sharing and the superiority supplementary, guarantees the raw material the half-finished product to supply and to obtain science and technology agent and so on competitive advantage carries on the purchase to the goal company,often can have the corresponding management coordination effect,the management coordination effect,the financial coordination effect, the market coordination effect or the market share effect. Although the analysis is carried on from just one angle,but it's had demonstrated a great deal of positive and beneficial factors of listed company purchasing.The fourth chapter is the keystone of this article,mainly discussing how to regulate the negative effects of listed company purchases in our country to perfect this system. From the three aspects of concerted action , the counter-purchase and the protection correlative benefit,it elaborates the existing defects and the solutions.Any theoretically in-depth discussion on listed company purchases will certainly impel the development of the correlative matters,and have the positive function to perfect the legal system of our country.