About The Acquisition Of Listed Companies The Parties' Legal Issues

Corporate takeover through the public markets (hereinafter "takeover") means the legal act intending to get the control of a public corporation by means of acquisition of its shares. Takeover and its legal control are both important and complicated. This article particularly analyzes the qualification of Takeoverer and the Target Company and the relationship between them. Chapter I discusses the qualification and the main obligation of Takeoverer, focuses on the definition of "people acting in concert". Chapter II, III, IV divide the Target Company into three independent but related parties, controlling shareholders, minority shareholders and the directorate. Analyze their relationships and emphasize the bondage of controlling shareholders and the directorate and the protection of the minority shareholders. This article, adopting the approach of comparative law, review and analyze all main legal issue concerning takeover, and then put forward some proposals and suggestions based on the actual circumstance of China.