Research On Validity Of Poison Pill In China

Poison pill program was launched in the United States market,is an anti-takeover measures widely used overseas.After decades of development and improvement,it has also produced a variety of different types.In recent years,the company acquisition activities are becoming more and more frequent,hostile takeover has also posed a threat to the sustainable and healthy development of Chinese companies.But restricted by the strict company capital system and the current stock issuance system,there is no precedent for the successful use of poison pill plan in China.And according to the principle of "same shares and equal rights",there is a theoretical dispute on the ownership of the decision-making power of poison pill plan.These reasons make the legality of poison pills in our country be questioned.After China entered a new period of reform and opening up,the Company Law has been amended accordingly,which provides the possibility for the implementation of poison pill plan.The Securities Law,which is under revision,also shows that the legislative trend of our country is in favor of the implementation of poison pill plan.And the company decided to implement the poison pill plan and the spirit of our company law in line with the spirit independently.Thus,under the company capital system and the stock issuance system in the new period,by establishing various rules of legality examination,we can perfect the key links such as the disclosure of information in the implementation of the poison pill plan.The establishment of a system can make the poison pill plan work and guarantee that the application of the poison pill plan in our country is legal and feasible.In the increasingly complex acquisition and anti-takeover competition,the application of poison pill plan will also provide a strong guarantee for the growth and development of Chinese companies.