Department of Public Offering Supervision of China Securities Regulatory Commission, Standards for Examination and Verification of Share Issues Memorandum No.14 - Examination and Verification Requirements for Major Affiliated Transactions and Other Matters of Companies that Offer Securities to the Public
中国证监会发行监管部股票发行审核标准备忘录第14号 -关于公开发行证券的公司重大关联交易等事项的审核要求
October 02, 2002 | BY
clpstaff &clp articles &Issued: September 5 2002Main contents: The Memorandum imposes additional disclosure requirements on companies that apply for issuance of new shares and…
Issued: September 5 2002
Main contents: The Memorandum imposes additional disclosure requirements on companies that apply for issuance of new shares and their intermediaries. An issuer is required to disclose in its prospectus the opinions of its independent director, legal advisor (in the case of (1) below only), reporting accountant and lead underwriter on certain matters in relation to the relevant reporting period. These matters include: (1) any major affiliated transaction with a value of over Rmb30 million or 5% of the issuer's latest audited net asset value (Item One); (2) the issuer's asset devaluation provision policy and the sufficiency and impact of such provisions (Item Two); (3) any material contingency that involves an amount or an accumulative amount during a period of 12 months over 10% of the issuer's latest audited net asset value and the impact of such contingency (Item Three); and (4) the impact of any extraordinary loss or gain that exceeds 20% of the issuer's total profit (Item Four).
Related legislation: Questions Relating to the Accounting Treatment of Asset Sales Between Affiliated Parties Tentative Provisions, Dec 21 2001, CLP 2002 No.1 p5
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