A few tips

1The arbitration proceedings, not to be listed enterprises as great scourges, which the company for illegal behavior punishment, litigation or arbitration to the company is not a bad thing.

2For complete, litigation and arbitration, just cause, process, results detailed description of events and business can be produced; of course, also need to factor to focus on whether there is potential risk.

3For the unfinished, litigation and arbitration, to be divided into two situations: one, for litigation and arbitration a party, then introduces the developing process of events as well as the impact on a company can, of course also were concerned about counterclaim may. Second, if the company as a defendant or by arbitration, so need detailed estimates of the production and operation of the company, especially the influence of financial data, sufficient and adequate provision of contingent liabilities and major risk warning; if the amount is large or great impact on the company, then there is the major shareholder of emergency measures issued by the commitment, bear the lose may bring loss.

4For, of course, litigation and arbitration standards also need to understand, small little attention on it, if the amount is large enough to require careful judgement. As for what is the standard, the first approach is not clearly defined, provides reference listing rules: listing Corporation's major litigation, arbitration matters involving accounted for the company's latest audited net assets of absolute value10%, and the absolute value of more than1000Million yuan, it shall give a timely disclosure. Does not meet the standards or litigation, arbitration matters not specifically the amount of money involved, the board of directors special cases that may have great influence on the company shares and their derivatives based on transaction price, or the bourse deems it necessary, and relates to the general meeting of shareholders, the board of directors for the resolution was revoked or declared invalid litigation, company should also be timely disclosure. Significant lawsuits, arbitrations where a listing Corporation shall take for twelve consecutive months, the accumulative calculation principle, not into the accumulative calculation has to perform the relevant obligations.

5The relevant matters, relevant litigation and arbitration must do a comprehensive survey and after full investigation, if the sponsor agencies and local government relationship is good if you can to the public security system or China court to query.

6The following case from dirt, brother of the blog, the content is relatively old, welcome everybody to provide the latest case. In addition, to draw the attention to the interpretation of Xia off environmental protection on anti-dumping investigations.

Two, several cases

1State shares, day

The company prospectus disclosure of information, 2006Years6Month29DayLimited by Share Ltd, Shanghai Dajiang (Group) to the issuer, Zhang Zhao (former Shanghai tianbang natural person shareholder), Shanghai tianbang (issuer controlled subsidiaries) for the defendant to the Shanghai first intermediate people's court, the defendant to the plaintiff to pay for the requirements of equity transfer and the occurrence of the accounts825Million, and incur a deferred payment fines and litigation fee.2007Years2Month2DayShanghai City, the higher people's court to[2006]Shanghai Gao Min two (business) with the word no.196No. "civil Award" ruling the termination.2007Years2Month14DayShanghai day state, and shares of major sign "payment balance of accounts and payment agreement", Shanghai tianbang to shares of major payment clause825.82Million yuan, payment payment payment228.84Million yuan. So far, the current paragraph dispute case all matters have been dealt with, is expected to reduce the issuer2006The annual net profit227.43Million yuan.

2007Years3Month8DayThe formal signing of the day state shares prospectus disclosure in the specification does not company2006Annual performance. End2006Years3The end of the quarter, the company achieved a net profit of1964Million yuan. Company2007Years4Month24DayPublish2006Annual report,2006Annual net profit2041Million yuan. The major litigation resulted in the loss of the company2006The number of years to achieve the net profit11.12%.

2HEDY holding

2002Years4Month16DayWhampoa　 District, Guangzhou city construction company for the project disputes to the Guangzhou City Intermediate People's court the issuer (the first defendant) and Guangzhou HEDY Information Industry Company Limited (the second defendant), require payment of HEDY computer production base No. three, No. four plant and power station engineering Cheng Kuan (including idling losses, increasing Engineering)1189.53 Million yuan, breach of contract238.18 Million yuan, the total amount of litigation1427.71 Million yuan. The lawsuit was issued in Guangzhou City Intermediate People's Court of first instance, if lost, the issuer will face greater risk of payment the amount of compensation. (the company listed in the previous year2003The annual net profit for the5631Million yuan)

Therefore Guangzhou HEDY Information Industry Co Ltd has pledged its commitment to this action by all litigation risk, the actual controller Yi Xianzhong HEDY information (Yi is also the issuer's first shareholder) also has issued a "letter of commitment", commitment:"If all the remaining assets after liquidation HEDY information is still not enough to take the lawsuit of compensation, the amount of compensation for the difference, responsible for complement".

The issuer's lawyer thinks, although the "construction contract" signed by the issuer, but this project belongs to all information and HEDY HEDY, information promises to take full responsibility and provide corresponding guarantees. The case there is no amount of compensation is larger, and HEDY information by all of its assets guarantee, also provides600Million in cash deposit guarantee, resulting in substantial influence the final processing results in the case not to the issuer's ability to continue.

3, Xia off environmental protection

2003Years12Month19DayAs the issuer, listed on the preparatory work wildly beating gongs and drums occasion, the European Commission issued a notice of investigation2003Years1Month1DayTo2003Years12Month31DaySince the polyester fiber China and Saudi Arabia import anti-dumping investigation. The issuer is listed as one of the enterprises survey. Fortunately, the issuer of polyester fiber products in the EU member states of the sales revenue only accounts for the2003 In the main business income4.79%, the main business profit only accounts for the main business profit3.31%.

Including the interpretation of rhetoric and measures the issuer disclosure:1,The company has been under investigation content ready, according to respect the facts, oppose discrimination, fair trade international trade principles, actively responding to active defence;2,The company in line with EU"Market economy status"Conditions: the production and operating activities of enterprises are not subject to state intervention; ② meetGAAP Standard accounting system and accounting statements audited; the production cost of enterprises and financial status in the process of change from the non market economy without significant distortions; the enterprise applies to bankruptcy law and property law; the foreign exchange rate market execution according to.3,Polyester fiber polyester production company with regeneration, in the aspects of raw material cost and production cost is low, there is a big profit space. And its role in environmental protection in line with the EU renewable materials to use, reduce environmental pollution of industrial policy, by the European Union to advocate and encourage.

The issuer lawyer in Jiangsu century colleagues think:1,The anti-dumping case is different from the case in general, the final anti-dumping cases results will not be any impact on the business performance of the past, nor to the issuer or loss caused by any existing property.2,The issuer has hired lawyers to actively responding to, related to program to the normal according to the regulations. According to the analysis of the special situation and the issuer of the EU anti-dumping investigations into the background, reason, the issuer of the products involved in the case of market economy status, reasons the issuer is sufficient.3,Issuer is polyester staple export ratio decreased year by year, exports of polyester staple from2002Years accounted for the main business income ratio18.2%Down to the2003Years of16.9%.2003Year, the products involved in the EU member states the sales revenue accounted for only the issuer2003In the main business income4.79%, the main business profits accounted for the company's main business profit ratio is only3.31%. Therefore, we believe that, even if the EU eventually decided against the issuer's ruling, the issuer to stop all exports to the EU, impact on the issuer is also very limited, do not constitute a significant impact.