Is it illegal to buy shell companies?

Companies need to issue shares in the securities market to meet certain conditions. In order to achieve rapid listing, some companies will acquire listed companies and then restructure their assets, which is also commonly known as backdoor listing. So is it illegal to buy shell companies? The following is a small series to answer the relevant knowledge for readers.

The law allows companies to go public through the acquisition of shell companies, but the demand for listing in this way conforms to the law.

Measures for the Administration of Major Asset Restructuring of Listed Companies

Article 10 A listed company shall meet the following requirements when implementing major asset restructuring:

(a) in line with the provisions of the national industrial policy and environmental protection, land management, anti-monopoly and other laws and administrative regulations;

(2) It will not cause the listed company to fail to meet the conditions for listing shares;

(3) The assets involved in major asset restructuring are priced fairly, and there is no circumstance that damages the legitimate rights and interests of listed companies and shareholders;

(4) The ownership of assets involved in major asset restructuring is clear, there are no legal obstacles to asset transfer, and the related creditor's rights and debts are handled legally;

(5) It is conducive to the ability of the listed company to continue to operate, and there is no situation that may lead to the reorganization of the listed company's main assets as cash or no specific business;

(6) It is conducive to the listed company's independence from the actual controller and its related parties in terms of business, assets, finance, personnel, institutions, etc., and conforms to the relevant provisions of the China Securities Regulatory Commission on the independence of listed companies;

(seven) is conducive to the formation or maintenance of a sound and effective corporate governance structure of listed companies.

The above knowledge is Bian Xiao's "Is it illegal to buy a shell company?" The law allows companies to go public by buying shells, but the demand for listing in this way conforms to the law. Readers who need legal help are welcome to seek legal advice.