Law Regulation On Bay-out Game Of Companies

The market economy history of our country is not long, and company buy-out, especially buy-out of going-public companies is a new thing. Even so, China has promulgated in just a dozen years, a series of laws and regulations, such as Securities Act, Company Law, statute of stock issuance and exchange management Temporary, management of going-public companies buy-out, management of the disclosure of information of shareholding changes of going-public companies. The buy-out legal system of going-public companies has established, which reflects China has made great achievements in the construction of legal system. However, it's clear that the buy-out legislation of going-public companies still exists many problems, such as no operation caused by uncertainty, no full protection of the interest of investors, the company's buy-out legislation of our country falling behind when compared to other relatively matured countries.One of the necessary conditions for free trade of property rights and the free movement of capital is the existence and the normal functioning of the market economy. Buy-out and merger of property rights and companies is therefore bound to become a regular phenomenon in the market economy system. The merger and buy-out which survive of the fittest is often beneficial to the industrial structure, product structure and adjustment of enterprises structure, optimization and upgrading of the entire economic structure, optimization of the allocation of resources and the improvement of economic efficiency. As the market economy system of our country has been established and kept improving, buy-out of companies has become part of the social life.In microeconomic perspective, buy-out of companies is the balance of interest, which means that not only the interest of the buy-out company is involved in the buy-out, but also the interest of the target company, the interest of directors and shareholders of all the companies involved (in reality, such aspects as employee benefits and social impact are also involved). All participants form in the buy-out a chain interaction and even constraints according to its own interests, which can be viewed as a game. In this game, the parties were neither reckless nor in disorder. Therefore, regulations are necessary to develop good game rules and "to consolidate fairness and efficiency". On October 23, 2005, the 18th meeting of the tenth National People's Congress Standing Committee examined and adopted the PRC Company Law (Amendment), which has more provisions to the buy-out of companies. Of course,...