Category: Money tips Release Date: 2006-03-23
May 31, 2005, the media reported that China Liuyang Fireworks Hann, chairman and general manager of Deng Yiyang, Finance Director Gao Rui E three executives because of irregularities collective "after class." Kind-hearted people might think that three executives Liuyang Fireworks, "School" with a representative of the fate of significance, it will become senior executives of listed companies in the future non-compliance "example." However, I must point out that three executives Liuyang Fireworks of "School" does not have the typical sense, but also can not expect other breaches of the listed company executives rallied together to "follow."
Why do I say? Or start with three executives talk about the irregularities. GUO Han-hua, DENG Yiyang, high Ruie three cases of irregularities, namely a security violation in violation of regulations related-party transactions, misappropriation of fund-raising. These three cases of "crimes" are a typical, basically outlines the types of violations listed company executives. Has been a listed company executives offenders public, but most of all to review the trouble, forced to "after class" and not many collective "after class" and even more infrequent.
Liuyang fireworks is the resignation of three executives, rather than being removed from office. Whether this "resignation" is voluntary, at least shows that the listed companies of their resignation or otherwise, and has no coercive power. In recent years, has been the securities regulatory department shall order rectification of no less than dozens of listed companies, but executives resign or be related to removal of few and far between. Why is that? Is because there is no clearly defined. Corporate Law, Securities Law, which is not clearly defined, a listed company's charter did not contain clear provisions. Since there is no clearly defined, then it is entirely by the resignation of senior executives of listed companies own hands, and thin-skinned point, you may take the initiative to apply for resignation, thick-skinned point, also continue to act in. To Liuyang Fireworks, for example, three executives with other rectification of irregularities of listed companies compared to the nature is not the worst, the amount involved is not the biggest, and has taken remedial measures, resulting in the loss is not the biggest, but the Executives collective "after class." This shows that, for non-compliance executives how to deal with, there is no uniform standards and uniform requirements. So, three executives Liuyang Fireworks collective "after class" can only be seen as a case, rather than typical.
Currently used by China's securities market laws and regulations, is basically "on the public not private." After the accident, the penalties listed companies more responsible for penalties related to small, even if the punishment of only a reprimand, a fine. Relative to non-compliance in the illegal behavior to make profits, this casual type of punishment is simply not worth mentioning. Executives of listed companies non-compliance costs and benefits of significant asymmetry. Or in Liuyang Fireworks, for example, three cases of violations, two involved the Tianma Industrial Co., Ltd., Hunan Province, one to provide 60 million for the Tianma Industrial security; First, 100 million yuan of the related-party transactions, the company's chairman is the chairman of Hann China Liuyang Fireworks, which in the end there is no insider trading inside, there is no personal interest exist? These issues are well worth serious consideration, but who will go to get to the bottom then? Rectification of the listed companies in the past, several have been studied further? The executives of listed companies, there are a few were handed over to judicial authorities it? To understand this point, is not difficult to understand why the executives of listed companies in violation despite repeated prohibitions.
Breaches of listed companies has seriously damaged the normal operation of the securities market, a rule of the rule is long overdue. To rule effectively as well, you have to modify the current legal system, strengthening the accountability of individual responsibility, improve the legal responsibility of offenders. Meanwhile, the establishment of the securities regulatory departments and the judiciary cooperation mechanism, so that offenders nowhere to escape.
