China Securities Regulatory Commission, Guidelines for Contents and Formats for Information Disclosures by Companies That Offer Securities to the Public (No.18): Board of Directors' Reports of Target Companies

Promulgated: August 4 2006
Effective: September 1 2006
Interpreting authority: China Securities Regulatory Commission

Main contents: In the case of a management buyout, the independent directors of the target company shall give independent opinion on the source of funding, repayment plan, whether the buyout complies with the conditions and approval procedures specified in the Measures for the Administration of the Takeover of Listed Companies (Revised in 2014) , whether the takeover conditions are equitable and reasonable, whether there exist acts that harm the interests of the listed company and other shareholders, and the potential impact on the listed company (Article 27).
Related legislation: Measures for the Administration of the Takeover of Listed Companies (Revised in 2014) and PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31