Shanghai Stock Exchange, Issues in Information Disclosures Concerning the Acquisition by a Listed Company of Trademarks and Other Intangible Assets from Its Parent Company Circular

Issued: December 6 2000
Effective: as of date of issue

Main contents: According to the Circular, the independent financial advisor engaged by a listed company to issue a report on the acquisition of trademarks or other intangible assets through an affiliated transaction shall make a statement as to its own independence. In addition, the financial advisor shall issue an opinion on the respective contributions of the two parties to the formation of the acquired asset and the fairness of the transaction (Section One). Meanwhile, the board of directors of the listed company shall disclose any use, for consideration, of the intangible asset by the two parties prior to the transaction, the impact of the amortization of the intangible asset on the future operation of the listed company and any continued use of the intangible asset by the selling party after the transaction (Section Two). The listed company shall disclose a summary of the evaluation report related to the transaction in a designated publication (Section Three).