Academic journal article Canadian Social Science

Legal Issues on the Asset Restructuring of Listed Companies/QUESTIONS JURIDIQUES SUR LA RESTRUCTURATION DES ACTIFS DES SOCITÉTÉS COTÉES EN BOURSE

Academic journal article Canadian Social Science

Legal Issues on the Asset Restructuring of Listed Companies/QUESTIONS JURIDIQUES SUR LA RESTRUCTURATION DES ACTIFS DES SOCITÉTÉS COTÉES EN BOURSE

Article excerpt

Abstract: Based on the theoretical research on the asset restructuring of listed company, including the comparison of asset restructuring with other concepts, types and modes of asset restructuring of listed company, this paper examines the legal nature of asset replacement, legal issues on debt-equity swap, the protection of creditors, and cross-ownership. By evaluating the current legislation on asset restructuring of listed company in China, the author suggest relevant measures to promote current legal systems on main system, public information system, and Responsibility system.

Key words: Asset restructuring; Asset replacement; Debt-to-equity swap

Résumé: Basé sur des recherches théoriques sur la restructuration des actifs des sociétés cotées en Bourse, y compris la comparaison avec d'autres concepts, d'autres types et modes de la restructuration des actifs des sociétées cotées en Bourse, cet article examine la nature juridique du replacement des actifs, questions juridiques sur la conversion de la dette en actions, sur la protection de créditeurs et sur l'actionnariat croisé. En faisant des évaluations sur la législation de la restructuration des actifs des sociétées cotées en Bourse en Chine, l'auteur suggère des mesures pertinentes pour promouvoir les systèmes légaux actuels de notre système principal, du système d'information publique et du système de responsabilité.

Mots-Clés: Restructuration des actifs; Replacement des actifs; Transformation actions-créances

Listed companies play a critical role in the whole financial market, with the fifth wave of corporate mergers in the world, asset restructuring of listed companies also set off a new round storm in China, but without systematic legislation on asset restructuring, there are a lot of problems in the process of restructuring asset, such as asset replacement, transferring debt to shares, staff participation, the protection of creditors, internal control and so on. We will discuss the asset restructuring of listed companies on several aspects, though which we try to found out an ideal way to improve the current legal system in China.

1. THEORIES ON ASSET RESTRUCTURING OF LISTED COMPANIES

1.1 Comparision of asset restructuring with other relevant concepts

Asset restructuring is dependent concept that exists during the process of state-owned enterprise reform. After many years of development, there has been rich fruit of studies on asset restructuring, but different people have different point of views about the concept of asset restructuring, the question finally settled in 2008. The application scope of Management on Significant Asset Restructuring of Listed Company, which was formulated by Securities Regulatory Commission on March 24, 2008, came to effect on May 18, 2008. From this administrative legislation, we can definite the concept of asset restructuring, that is, asset restructuring means enterprise trade asset by the way of buying, selling and other ways outside daily business, which lead to the change of main business, asset and income.3 The definition of asset restructuring can help us separate asset restructuring from related concept.

1.1.1 Asset restructuring and capital operation

The practice of capital operation originated in the west world, especially from the developed market economy countries such as USA, UK etc. Nevertheless, the just concept of asset restructuring was born formally in China. What is so-called operation is to achieve capital appreciation by arrangement asset artificially by the way of investment and financing, asset restructuring and property right trades and so on. Therefore, capital operation have larger scope than asset restructuring, asset restructuring is just one of means of capital operation. However, asset restructuring is the most important means of capital operation, so asset restructuring and capital operation often mix.

1.1.2 Asset restructuring and corporate restructuring

Corporate restructuring is to change structure of enterprise, leading to asset restructuring and finally realizing optimal allocation of resources and efficiency growth by the way of merger, separation, bankruptcy, acquisition and joint through property right flows among corporations. …

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