(1)The act to submit the written report to CSRC (China Securities Regulatory Commission) is correct, but to keep secret to the acquired company is wrong. By law, the securities transactions happen through the Securities Exchange, when the investor and persons acting in concert have the issued shares reaches to 5% of a listed company, the change of interest report should be drawn up within three days after the fact happened. The written report should be submitted to CSRC and Securities Exchange, at the same time, be submitted to the institution dispatched by the CSRC where the listed company located. The listed company should be notified and they shall make an announcement.
(2)① The calculation of the shares of Company C held by two subsidiaries is correct, and the two subsidiaries interact as both persons acting in concert. According to the rule, the investors become the persons acting in concert if they have agreement on action when purchasing the listed company and in activities related to changes in the owner‘s equities. The shares held by persons acting in concert should be calculated together.
② To halt the trading is correct. According to rules, when the interest shares reaches to 5% of the issued capital stock of a listed company, report should be submitted and an
announcement should be issued. Within the aforesaid prescribed period, the investor shall not purchase or sell any shares of the listed company any more. When the shares reaches to 5% of the listed company, as securities transactions happen through the Securities Exchange, every 5% augment and every 5% decrease should be reported and announced according to the rules mentioned above. Within the reporting period as well as two days after the relevant report and announcement are made, the investor may not purchase or sell any shares of the listed company any more.
(3)Compile the detailed report of equity-type changes is correct. It is laid down in law that investors and persons acting in concert are the first majority shareholder and the actual controller of the listed company. When the first majority shareholder holds the interest shares reach to 5% but less than 20% of the issued shares, the detailed report of equity-type changes should be drawn up.
(4)When the issued shares of company C has been purchased up to 30%, the only way the listed company may be purchased is by offer, thus the way to purchase by agree with specific shareholders is incorrect. Under current law, if an acquirer purchases 30% or more of the issued shares of a domestic listed company, it must make an entirety or partly offer to continue the purchase.
(5)The duration of the purchase is incorrect. Under the rules, the duration of an offer shall not be shorter than 30 days.
(6)The way by lot to ascertain the purchased shares in advance by the offer is incorrect. Under the rules, when the number of offer shares exceeds to that of scheduled purchase, the purchaser should buy the shares in the form of offer in a slump of comparable proportions.
(7) The reason of application for exemption is incorrect. Capital insufficient is excluded from the items that the purchasers can apply for the exemption.
(8) Nine months after the purchase finished, the act that company C aliens its holding shares is incorrect. Under the law, the purchaser shall not transfer the purchased stocks within twelve months after the purchase has been completed.