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Shenzhen Stock Exchange Issued Memorandum of Share Reform to Standardize Repayment Procedure of Advance Consideration


http://finance.sina.com.cn 09:15, December 7, 2005 Securities Times

The Shenzhen Stock Exchange yesterday released the No. 10 memorandum on the reform of non tradable shares, which aims to standardize the repayment procedure of the advanced consideration, protect the shareholders' rights and interests of the company, and ensure the smooth progress of the follow-up work of the share reform of listed companies.

According to No. 10 of the memorandum, for listed companies that have completed share reform through advanced consideration, the issue of repayment of advanced consideration can be solved through consensus between shareholders of both parties, such as share, cash or other methods agreed by both parties. If there is no defect in the subject qualification and shares held by the repayment shareholder, the method of share repayment can be adopted. Advance payment right
The repayment of the consideration shares is regarded as the follow-up processing of the implementation of the consideration arrangement, and the relevant repayment procedures can be handled after the relevant shareholders reach an agreement through consultation, without being subject to the restriction of one-year lock up period, and without paying the relevant taxes.

In addition, No. 10 of the memorandum also clearly stipulates the documents and business operation process required for filing the repayment application, and also stipulates the relevant information disclosure. (Zhang Ke)


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