On 28 July 2023, CHI CSRC answered questions re division of shares.
- CHI CSRC answered questions from reporters on matters related to the divorce of major shareholders of listed companies and the resulting division of company shares.
- Background
- Since the beginning of 2023, there have been a number of incidents in the market where major shareholders of listed companies split their shares due to divorce.
- There is concern that this behavior is bypassing shareholding reduction arrangements.
Division of Shares
- CHI CSRC said that major shareholders of listed companies, directors, managers, as key minority, have special obligations in the company's governance and operation.
- They should consciously regulate the behavior of shareholding reduction, and must not circumvent restrictions by any means such as divorce, dissolution, liquidation, division.
- All such parties should comply with relevant regulations on shareholding reduction.