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Study On Legal Problems Of MBO Of Listed Company In China

Posted on:2009-09-12Degree:MasterType:Thesis
Country:ChinaCandidate:S ZhangFull Text:PDF
GTID:2166360272479673Subject:Economic Law
Abstract/Summary:PDF Full Text Request
MBO is a kind of purchase way normally used in western market economy world. Recently, it is becoming a popular topic of law of the reform of state-owned enterprises and stock markets in China. However, during the process of MBO in China, the problems, such as the main body of purchasing, setting a price, financing, information disclosure and so on resulted in lots of MBO trouble.Under the laws about subject of MBO, the identification of individual, artificial person, shell company and employee shareholder association as MBO's subject is risking the legal punishment, and legal obstacles such as purchase expansion increase and shareholder income decrease exist in some case. The abolishment of legal obstacles of MBO actions such as trusteeship of stock ownership and company, and independent legislation of shell companies founded for MBO specially, are quite scientific and effective ways to improve the legislation. Then the legal obstruction of financing is analyzed. The financing of management getting loan from companies and banks is illegal sometimes according to the laws of China. And the suggestion of improving the credit and loan restriction, gradually broadening the restrain of bank loans and etc. to consummate it is presented. After that, legislation of pricing in MBO is incomplete. The laws for MBO price are insufficient except the suggestion of not less than complete asset per share. In addition, the public pricing mode of price based on complete asset per share and considering the market surplus rate is recommended. The problems of information disclosure illegally and disguising or distorting important information exist in information disclosure of listed companies sometimes. At last, the suggestion of severe punishments on acts of forging documents, found of effect exit system of fond and extend of the information amount of finance report forms to regulate the information disclosure of listed companies is proposed.
Keywords/Search Tags:Listed Company, Management Buy-Outs, Trust Financing, Pricing of Acquisitions, Information Disclosure
PDF Full Text Request
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