China Securities Regulatory Commission, Share Issuance Examination Committee Tentative Procedures

Promulgated: December 5 2003
Effective: as of date of promulgation
Applicability: The Procedures apply to the examination and verification of applications for issuance of convertible corporate bonds and other securities by the Share Issuance Examination Committee (Committee) (Article 37).

Main contents: The Procedures repeal the Share Issuance Examination Committee Regulations (Regulations) promulgated in 1999. The new Procedures reduce the number of committee members to 25. Five are from the China Securities Regulatory Commission (CSRC) and the other 20 are from outside the CSRC (Article 6). The term of a member shall be one year. A member may be re-appointed for up to three consecutive terms (Article 7). The Procedures remove the age and Chinese nationality requirements of the previous Regulations. Persons who have held posts in listed companies or companies planning to list may now be appointed. Committee members are required to record their personal examination opinions on their working papers (Article 21). Voting shall be conducted by open ballots. Committee members can only vote for approval or disapproval but cannot abstain from voting (Article 23). The Committee shall carry out an examination of each share issuance application only once (Article 24). The CSRC may request for a re-examination of a Committee-adopted application if major matters that are inconsistent with the submitted share issuance application happen to the issuer before the approval of the CSRC (Article 27).
Related legislation: PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p21 and PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p31
Repealed legislation: Share Issuance Examination Committee Regulations, Sep 16 1999, CLP 1999 No.9 p7