Monday, December 31, 2007

Chinesepod - China builds new committee to oversee M&A of listed companies

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BIZCHINA / Center

China builds new committee to oversee M&A of listed companies

(Xinhua)
Updated: 2007-09-18 11:30

China's securities regulator set up a new committee to oversee mergers
and acquisitions (M&A) of listed companies, in an effort to eliminate
insider trading and guarantee transparency in government approval of
listed companies' M&A activities.

The M&A activities that would need examination from the new committee
include key assets restructuring moves, the issuance of new shares and
the purchase of assets from specified parties, and the merger and
separation of listed companies, according to a new regulation published
on the website of the China Securities Regulatory Commission (CSRC) on
Monday.

But the approval power remained in the hands of the commission itself.

The new committee will be composed of 25 commissioners appointed by CSRC,
including five professionals with CSRC. Each commissioner is appointed
for one year, and can be re-appointed for no more than three terms.

The committee will check the M&A applications from listed companies,
examine the materials and opinions provided by financial advisors,
accounting firms, law firms and assets evaluation organizations, and
review the trial examination reports issued by CSRC departments.

The securities regulator also specified detailed requirements of listed
companies that initiate major assets restructuring activities, ordering
that the relevant information be disclosed accurately, timely and fairly,
in a bid to rule out insider trading.

(For more biz stories, please visit Industry Updates)

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