Legal Studies On Mandatory Takeover Bid Of Listed Companies

Mandatory Takeover bid of the listed company means the legal act intending to get control of a corporation by means of acquisition of its shares. Takeover and its legal control are both important and complicated. When somebody holds the stocks of a listed company reaches a legal proportion, all the shareholders of the target company should be offered to sell all the stocks at a legal price. The fair value that it pursue mainly passes two aspects to carry out:First, the value paying for becoming the master of the target company should be shared by all the shareholders of the company. Second, the shareholders should be given the rights to evacuate their stocks. Whatever, shareholder with fewer stocks has the right to withdraw those investments at least. This is the keystone of mandatory takeover bid, also the basically element of the takeover of listed company which is the most important part of Securities Law of the People's Republic of China(for short Securities Law). In the past, the acquirer who holds 30% stocks should purchase all the other shares but now mandatory takeover bid has changed wholly according to the amendment of mandatory takeover bid of listed company in Securities Law. This system gives not only the directive function to Takeover Bid of listed company, but also the rule in purchase. In this paper the author will analyze and estimate it in four parts.Firstly, the author introduces the concept, creation and the history developments of the mandatory takeover bid, then emphasize the function of it in our securities business, and give some judgments of it.Secondly, the author discusses the legislation value and the basic principle of it. There is a basic aim which takes by the mandatory takeover bid. The acquirer takes mandatory takeover bid obligation in order to protect the value of stockholders of the target companies and maintain the order of securities business. The acquirer who should take more protection are the...