According to China's Company Law, if a listed company has one of the legal circumstances, including failing to disclose its financial status or making false records in its financial and accounting reports, resulting in serious consequences, or the listed company has seriously violated the law and its stock trading has been suspended, the the State Council securities regulatory authority has the right to decide to terminate its stock trading.
In other cases of suspension of listing, the securities regulatory body shall make corrections within a time limit. If the above situation cannot be eliminated within the time limit, the the State Council Securities Regulatory Authority also has the right to decide to terminate the listing of the listed company's shares. In addition, if the shareholders' meeting of a listed company makes a resolution to dissolve the company, or if it is ordered to close down or revoke its business license due to illegal acts, or if it is insolvent and declared bankrupt by the people's court according to legal procedures, the listed company must be dissolved and liquidated. In this case, the listed company's legal person qualification is cancelled, and its shares can no longer be listed and traded, and the the State Council Securities Regulatory Authority will make a decision to terminate its listing.
For the decision to suspend or terminate the listing made according to law, the stock exchange shall make corresponding suspension or termination of the listing according to its duties.
Relevant laws and regulations on termination of listing:
According to Articles 157 and 158 of China's Company Law, if a listed company has one of the following five circumstances, it shall be terminated by the securities administration department of the State Council:
(1) Total share capital and equity distribution of the company. Has changed, no longer meets the listing conditions and can not be eliminated within the time limit.
(2) The company fails to disclose its financial status as required, or makes false records in its financial and accounting reports, which has serious consequences after investigation.
(three) the company has a major illegal act, which is verified by investigation and has serious consequences.
(4) The company's continuous losses in the last three years have not been eliminated within the time limit.
(5) The company is dissolved, ordered to close by the administrative organ according to law or declared bankrupt.
Termination of listing means losing the qualification for listing on the exchange, also known as delisting. The Securities Law also clearly stipulates that unqualified listed companies should be delisted in accordance with the provisions of the Company Law. According to the Listing Rules of the Exchange, a listed company shall, after receiving the notice from China Securities Regulatory Commission to terminate the listing of its shares, publish an announcement on the termination of the listing of shares in a designated newspaper, and specify the following contents:
(1) Type, abbreviation, stock code and date of termination of listing.
(2) The decision of China Securities Regulatory Commission to terminate its listing.
(3) Other contents required by the China Securities Regulatory Commission.
(4) Other contents deemed necessary by the Exchange. However, at present, there is no precedent for companies to withdraw from the market in China and Shenzhen.
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