Shenzhen Intermediate People's Court found that: the defendant was in April 1990 incorporated, then shareholders Shenzhen Nanshan Electronics Industry Development Corporation, Hong Kong Nam Hoi (International) Ltd. and Huaneng South Development Co., Ltd. three. In January 1991, according to the Shenzhen municipal government departments "About Shenzhen Nanshan Power Co., Ltd. approved the capital increase and share transfer," said the three shareholders of the investment ratio in 1990 will be part of the original company of undistributed injection, and increased by the transfer of shares the Shenzhen Investment Management Company and two shareholders Tengda Hong Kong Limited investment. March 18, 1992, accused the board of directors under the guidance of the competent authorities of Shenzhen securities, held a joint-stock reform conference, then that set up the Shenzhen Nanshan Power Co., the Preparatory Committee. May 26 the same year, the Shenzhen Municipal Commission for Restructuring the establishment of joint-stock companies to apply for the project. August 26, the Shenzhen Municipal Commission for Restructuring the joint-stock reform approved by the defendant, that line can carry out asset valuation, net asset verification, to develop the restructuring plan, the drafting of the restructuring documents; Shenzhen Investment Management Company approved project application to assess the defendant's assets. October 27, accused five foreign shareholders signed a sponsor agreement. December 9, the defendant's assets assessment is confirmed, legal opinions finalized. The plaintiff and the defendant company Shenzhen Energy Corporation shares, in February 6, 1993 tripartite agreement, the same year on March 2 when the Shenzhen municipal government office below it. Thereafter, the plaintiff had approached the city securities authorities, asked to do the promoters, and the proportion of shares proposed requirements. In this regard, People's Bank of China branch in Shenzhen Special Economic Zone of the report, said the mayor reported that the bank and the Shenzhen Economic Restructuring discussion identified the defendant's IPO plan, has taken into account the equity requirements of the plaintiff and the Shenzhen Energy Corporation, and given special care, a company is not to arrange directional corporate shares. Mayor on the report signed consent.
Accordingly, the Shenzhen Intermediate People's Court held that: According to the "Shenzhen Co., Ltd. Interim Provisions" Article XI, initiated the establishment refers to all of the shares by the promoters themselves five or more subscription issued by the Company, not to internal company employees and public offer of shares. Floatation means promoters shall subscribe for the shares issued by the Company for more than thirty-five percent, the rest of the company's internal staff, other legal or public recruitment. Listed companies are neither original plaintiff initial shareholders of the company, also did not participate in joint-stock reform of listed companies, listed companies do not meet the conditions of the promoters, the competent authority to determine its orientation can only subscribe corporate shares is correct. After mediation, the parties have reached the following agreement on May 11, 1993:
The amount of 30 million legal person shares directed by the Office of Municipal Securities Administration, the plaintiff subscribe 250 million shares to 700 million shares, the defendant additional subscription to 1,500 shares.
