Listing is a term in the securities market. In a narrow sense, listing, that is, initial public offering, refers to the process that enterprises issue additional shares to investors for the first time through the stock exchange in order to raise funds for enterprise development.
What are the precautions for equity transfer after the company goes public?
For the target company, the following matters should be ascertained:
1. Ownership structure, assets, liabilities, tax arrears and contingent liabilities of the target company.
2. The contents of the articles of association of the target company, especially the restrictive provisions on equity transfer in the articles of association.
Under normal circumstances, the transferee and the transferor shall jointly hire professional law firms, accounting firms and asset appraisal institutions to conduct due diligence on the legal status, financial status and important assets of the target company, and take the due diligence report as an annex to the equity transfer contract.
Legal basis:
Company Law of the People's Republic of China
Article 14 1
The shares of the company held by the promoters shall not be transferred within one year from the date of establishment of the company. Shares issued before the public offering of shares by the company shall not be transferred within one year from the date of listing and trading of the company's shares on the stock exchange.