Economic concentration includes the following categories: Merger of enterprises; Consolidation of enterprises; Acquisition of enterprises; Joint venture between/among enterprises; Other categories of economic concentration as per the law.
Merger of enterprises means an act whereby one or several enterprises transfer all of its/their property, rights, obligations and legitimate interests to another enterprise, and at the same time terminate the existence of the merged enterprises.
Consolidation of enterprises means an act whereby two or more enterprises transfer all of their property, rights, obligations and legitimate interests to form a new enterprise and, at the same time, terminate the existence of the consolidating enterprises.
Joint venture between enterprises means an act whereby two or more enterprises jointly contribute part of their property, rights, obligations and legitimate interests to the establishment of a new enterprise.
Acquisition of enterprises means an act whereby an enterprise acquires the whole or part of property or shares of another enterprise sufficient to control or dominate all or one of the trades of the acquired enterprise.
An enterprise will have control and influence over an enterprise or a business activity or industry of another enterprise if it falls into the following situations:
- The acquirer receives the ownership interest that makes up more than 50% of the acquiree’s charter capital or more than 50% of the acquiree’s total voting shares;
- The acquirer holds the right to own or use more than 50% of the acquiree’s total assets, out of all or a single business sector or industry of that acquiree;
- The acquirer has one of the following rights:
- Directly or indirectly making decisions on appointment, dismissal or discharge from office of most or all of members of the Governing Board, president of the Board of Directors, director or general director of the acquire;
- Making decisions on revision or modification of the acquiree’s corporate charter;
- Making decisions on the acquiree’s important business matters, including its form of business organization; its business activities, location, approaches; changes in its business size and activities or industries; its forms and methods of mobilization, distribution and investment of its capital.
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