THE controversial share conversion plan of Shanghai Dazhong Taxi is awaiting Beijing's approval after being given the go-ahead by shareholders on Tuesday. Yang Guoping, general manager of Shanghai's second-largest taxi operator, said yesterday the proposal, which triggered strong reaction from Beijing, was now being studied by officials. He said the proposal to issue offshore convertible bonds also had been passed by shareholders, although there were no regulations governing such issues. He said the issue of convertible bonds could become legitimate when China's first company law took effect from July 1. ''There are articles in the company law (articles 172 and 173) that laid down the criteria under which a company can issue convertible bonds,'' he said. However, there was no mention of the criteria for companies issuing offshore convertible bonds. Mr Yang said the company sought to raise between US$50 million and $80 million through the offshore bond issue. An underwriter had been named, he said.
