A Comparative Study On Legal System Of Mergers And Acquisitions Between Mainland China And Taiwan

As an important tool for enterprises to seek to become bigger and stronger,to realize the strategy of speeding up the development and to optimize the allocation of resources,corporate mergers and acquisitions have been favored and valued by all countries and regions.Since twenty-first Century,the mainland China and Taiwan joined the World Trade Organization in the year of 2001 and 2002.In June 2010,the mainland China and Taiwan signed ECFA(Economic Cooperation Framework Agreement)which opened a new chapter in cross-strait economic cooperation.In the aspect of Taiwan legal system of mergers acquisitions,because of the earlier market development,the corresponding legal system and supporting system is relatively mature,such as Company Law,Securities Law,Business Mergers and Acquisitions Act,The Financial Institutions Merger Act,Financial Holding Company Act.And the law in Taiwan always update according to the change.The latest version of Business Mergers and Acquisitions Act published in 2015.Therefore,in comparative study of mainland China and Taiwan’s legal system,there is many of the necessary mutual complementary and common needs.Especially in recent years,there are many classical cases which should be written into the textbook.Such as financial innovation which aroused focus and thinking on the financing and regulatory legislation.For this reason,this paper title is “A Comparative Study on Legal System of Mergers and Acquisitions between Mainland China and Taiwan” which has important theoretical value and practical significance.Chapter 1 introduces the background,significance,method,research status and innovation of the topic.Chapter 2 introduces different types of company mergers and acquisitions in legal system on both sides of the Taiwan and mainland China,comparing the similarities and differences of legal system on both sides.And add the new types of basic rules in mergers and acquisitions.Chapter 3 introduces the mode of financing and the corresponding law of Taiwan and mainland China,sums up in the new form of financing.In the aspect of insurance companies using insurance funds of mainland area,the high leverage as a means of merger and acquisition become a serious problem.Facing the challenges of leveraged buy-out,the paper puts forward some regulatory measures and solutions.Chapter 4 compares the financial supervision and regulation system on Taiwan and mainland China.The paper exposes regulatory problems on mainland China,such as non-perfect information disclosure system and the disadvantages of separate operation,separate supervision.Through the experience of Taiwan,this paper puts forward some legal solutions to these financial supervision problems.In the conclusion part,the paper summarizes the main ideas and main contents,and hopes to further improve the legal system of mergers and acquisitions,and to enhance the competitiveness of enterprises between mainland China and Taiwan.