Matters needing attention in company acquisition: 1. If it is to acquire part of the equity of the target enterprise, the acquirer should pay special attention to excluding the preemptive right of other shareholders of the target enterprise after performing legal procedures. 2. If it is to acquire the controlling interest of the target enterprise, the acquirer should pay special attention to fully understand the property and debt of the target enterprise. 3. If it is the acquisition of specific assets of the target enterprise, the acquirer should pay special attention to fully understand whether there are rights defects in the specific assets. 4. The acquirer should pay attention to setting safeguard clauses for himself in the letter of intent for acquisition.
Legal objectivity:
Company Law of the People's Republic of China
Article 142
A company may not purchase its own shares. However, except for one of the following circumstances:
(1) Reduce the registered capital of the company.
(2) Merging with other companies holding shares of the Company;
(3) Using shares for employee stock ownership plan or equity incentive;
(4) Shareholders request the company to purchase their shares because they disagree with the resolution of merger or division made by the shareholders' meeting;
(5) Using shares for the conversion of corporate bonds convertible into shares by listed companies.
(6) The need for listed companies to safeguard their own values and shareholders' rights and interests.