Legal Issues of Equity Division Reform (Lawyer's Perspective)

Author: Lü Hongbing, Li Kang (Editor-in-Chief)
Publisher:
Publish Date: 2006-07-01
Features: The launch of the equity split-up reform was the biggest event in China's securities market in 2005, and this reform will be carried out on a large scale in 2006, overcoming one challenge after another. Equity split-up reform is a unique policy issue in China's securities market, rich in legal issues. For lawyers, one of the participants, it is also a challenging legal practice issue. As early as June 2005, the Shanghai Lawyers Association and the Shanghai Institute of Law jointly held the "2005 Financial Rule of Law Forum - Legal Issues of Equity Split-up Symposium." It is verified that this was the first symposium in the securities market specifically dedicated to discussing the legal issues of the equity split-up reform, hence attracting high attention from all sectors of the market and the media. In addition to practicing lawyers and theoretical researchers, renowned figures in the securities market, such as Li Kang and Zhang Changhong, also attended the conference and gave speeches. One of the contents of this book is the paper submitted at that conference. It can be said that Shanghai lawyers have always held an important position in China's securities market. For example, in 2004, when China's securities issuance review system underwent a major reform, among the 11 external full-time review committee members, 4 were lawyers, one of whom came from Shanghai. In 2005 and 2006, among the 10 external full-time committee members, the number of lawyers from Shanghai increased to 3. According to statistics, in the equity split-up reform of 423 listed companies from May to December 2005, 78 were involved in Shanghai lawyers, accounting for 18% of the total, second only to Beijing lawyers in participation volume, ranking second. It is commendable that while Shanghai lawyers are busy drafting legal documents, they also take the time to write articles, with their professional insights clearly reflected on the page. This book is a crystallization of theory and practice, combining theoretical explorations by professionals with practical insights from practicing lawyers, as well as on-the-ground legal documents and operational rules attached to them, aiming to provide readers with references, inspiration, and guidance. Perhaps this is the very work that explores the equity split-up reform from the perspectives of "legal issues" and "lawyer's viewpoint!" Equity split-up reform is a unique policy issue in China's securities market, rich in legal issues. For lawyers participating in it, it is also a challenging legal practice issue. As early as June 2005, the Shanghai Lawyers Association and the Shanghai Institute of Law jointly held the "2005 Financial Rule of Law Forum - Legal Issues of Equity Split-up Symposium." It is verified that this was the first symposium in the securities market specifically dedicated to discussing the legal issues of the equity split-up reform, hence attracting high attention from all sectors of the market and the media. This book includes papers submitted at that conference. This book is a crystallization of theory and practice, combining theoretical explorations by professionals with practical insights from practicing lawyers, as well as on-the-ground legal documents and operational rules attached to them, aiming to provide readers with references, inspiration, and guidance.