Make a resolution or decision
When a joint stock limited company or a limited liability company issues corporate bonds, the board of directors shall formulate a plan and the shareholders' meeting shall make a resolution; The issuance of corporate bonds by a wholly state-owned company shall be decided by the state-authorized investment institution or the state-authorized department.
2. Apply for issuance
After a company makes a resolution or decision to issue corporate bonds, it must submit the required application documents to the department authorized and approved by the State Council in accordance with the conditions stipulated in the Company Law, and the submitted application documents must be true, accurate and complete. The application documents submitted to the authorized department of the State Council include: company registration certificate and articles of association. Measures for raising corporate bonds, asset evaluation report and capital verification report.
3. Approve the issuance of corporate bonds
The department authorized by the State Council is responsible for approving the issuance of corporate bonds in accordance with legal conditions, and the department shall make a decision within three months from the date of accepting the application documents for corporate bond issuance; If it is not approved, it shall explain the reasons.
4. Correct the misconduct in the issuance.
If the department authorized by the State Council finds that the decision to approve the issuance of corporate bonds does not conform to the provisions of laws and administrative regulations, it shall be revoked; If it has not been issued, it will stop issuing; Where corporate bonds have been issued, the issuing company shall refund the subscribed amount to the subscribers, and pay the bank deposit interest for the same period.
Advantages of issuing bonds by listed companies:
1, the financing scale is large.
Bonds are directly financed, the issuers are widely distributed, the market capacity is relatively large, and they are not constrained by the asset size and risk management of financial intermediaries, and the amount of funds that can be raised is also large.
2, long-term stability
The term of bonds can be relatively long, and bond investors can't claim the principal from enterprises before the maturity of bonds, so bond financing has the characteristics of long-term and stability.
3. It is beneficial to the optimal allocation of resources.
Since bonds are publicly issued, whether to buy bonds depends on the judgment of many investors in the market. Investors can trade and transfer their bonds conveniently, which is helpful to speed up market competition and optimize the efficiency of resource allocation of social funds.