What is the legal nature of listed companies?

The legal nature of the acquisition of listed companies is that listed companies acquire shares, gain control of the target company, and then gain profits by operating the acquired company. As the shareholders' own property, the shares of a listed company can be freely transferred according to law without the consent of the acquired company, which enables the acquirer to acquire its shares without the consent of the target company.

legal ground

Article 120 of the Company Law of People's Republic of China (PRC)

A listed company as mentioned in this Law refers to a joint stock limited company whose shares are listed and traded on a stock exchange.

Article 12 1

If a listed company purchases or sells major assets within one year or the amount of guarantee exceeds 30% of the company's total assets, it shall make a resolution at the shareholders' meeting, which shall be passed by more than two-thirds of the voting rights held by the shareholders present at the meeting.