Management independence is crucial for successful backdoor listings
August 19, 2011 | BY
Janice QuNew rules aim to curb insider trading and speculation
Companies seeking backdoor listings need to have a more sophisticated management system that maintains corporate independence, and investors should impose higher due diligence and supervision requirements, say counsel.
On August 5, the China Securities Regulatory Commission (CSRC) announced new rules tightening its supervision on backdoor listings. The criteria are made clear in the Decision on Revising Provisions Relevant to Material Asset Reorganisation by Listed Companies and Complementary Financing Thereof (??????????????????????????) (the Decision).
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