What are the policy obstacles in M&A?

There are the following related policy obstacles in merger and reorganization:

1, the administrative control is too strict;

2. The current serial approval method has high time cost;

3. Enterprises still face the problem of "double leapfrogging" in promoting merger and reorganization;

4. The motivation to promote M&A is still not strong;

5. Entry threshold of hidden industries;

6. Financial support is not in place;

7. The cost for enterprises to promote M&A is quite high.

legal ground

Article 172nd of the Company Law of People's Republic of China (PRC)

Company merger can adopt absorption merger or new merger.

A company absorbs other companies for merger, and the absorbed company is dissolved. The merger of two or more companies to form a new company is a new merger, and the parties to the merger are dissolved.

Article 173

When a company is merged, all parties to the merger shall sign a merger agreement and prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the merger resolution and make an announcement in the newspaper within 30 days. Creditors may, within 30 days from the date of receiving the notice, or within 45 days from the date of announcement if they have not received the notice, require the company to pay off debts or provide corresponding guarantees.