Month: Junio 2009
Provisions on M&A of a Domestic Enterprise by Foreign Investors
No.6 Decree of the Ministry of Commerce PRC on Promulgation of the Provisions on M&A of a Domestic Enterprise by Foreign Investors “Provisions”
In order to ensure “Provisions” coincide with the Anti-monopoly Law and the Provisions of the State Council on Thresholds for Declaration of Concentrations of Undertakings, revisions have been made and new “Provisions” were announced on June 22nd, 2009.
According to the Anti-monopoly Law, if a concentration reaches the threshold of declaration, a declaration must be lodged in advance with the Anti-monopoly Authority under the State Council. M&A is regarded as one method of reaching the concentration and should be certainly regulated. The new “Provisions” add one article to regulate the same standard and requirement as the Anti-monopoly Law in order to keep the consistency between different laws and regulations. Meanwhile, some little changes of words and expressions have been made in order to avoid the controversy and misunderstanding. For example, the “ultimate controller” has been revised to the “actual controller”. The modification in the new “Provisions” ultimately ensures the general terms’ accurate use in different laws and regulations.
New Measures on Growth Enterprise Market
1) Measures for the Issuance Examination Committee of China Securities Regulatory Commission (June 14,2009)
2) Administrative Measures for the Recommendation Business of the Issuance and Listing of Securities (June 14,2009)
The Measures stipulate the continuance supervision period for newly-listed companies on Growth Enterprise Market shall be the remainder of the listing year and 3 whole accounting years. The continuance supervision period for list companies on Growth Enterprise Market issuing new shares or convertible bonds shall be the remainder of the listing year and 2 whole accounting years. During the foresaid continuance supervision period, the recommendation institutes shall conduct tracking report and express independent views to relevant issues.
The Measures also clarifies the member numbers of the Issuance Examination Committee. A special examination committee is intended to be established for Growth Enterprise Market.
Administrative Provisions on Foreign Institutions Providing Financial Information Service in China
On June 1, MOC, Information Office of State Council and the administration for Industry and Commerce issues the Administrative Provisions on Foreign Institutions Providing Financial Information Service in China (hereafter referred to as “Provisions”).
The Provisions stipulates general approval procedure for the foreign institutions who purpose is to provide financial information service in China and procedure for foreign institutes who want to invest in established information service company. The Information Office of State Council is the supervision and examination authority of the foresaid foreign institutions providing financial information service.