Why does the shareholder have to make certain representations and warranties in the ADS Sale Agreement?
The shareholder must confirm that he is eligible for the Program. The shares to be sold in ADS form are likely to be sold into the United States or to United States persons and will be sold in transactions exempt from registration under the United States Securities Act of 1933, as amended (the “Securities Act”). As a result, it is necessary for the Trade Facilitator to confirm in representations and warranties certain factual information necessary to comply with applicable exemptions under the Securities Act. Also the Trade Facilitator needs to know that the selling shareholder acquired the shares being sold for investment purposes and not with a view to distribute them in this Program or otherwise.
