Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

A $391 Million Fine Has China’s Board Members Quitting En Masse

by
November 23, 2021
in Latest News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

(Bloomberg) — China’s independent directors are quitting once coveted seats on the boards of listed companies, spooked by fines levied on five directors of Kangmei Pharmaceutical Co. that totaled hundreds of millions of dollars.

Most Read from Bloomberg

RELATED POSTS

Investors see little to be gained in stocks the rest of the year, favor dividends, CNBC survey shows

FDA backs changing Covid booster shots to target most recent omicron subvariants

New York City Is Building a Wall of Oysters to Fend Off Floods

A Denser City, But at What Cost?

The Women Behind Historic House Designs

From Bathhouses to Fisheries, Hidden Inflation Is Creeping Across Japan

Maverick 70-Year-Old CEO Is Determined to Shake Up Japanese Finance

Independent directors of at least 20 companies listed on the Shanghai and Shenzhen stock exchanges have resigned after a Guangzhou court ruled on Nov. 12 that some Kangmei executives and their external accountants were responsible for fabricating its financial statements. They were required to jointly compensate investors for a combined 2.5 billion yuan ($391 million) of losses.

Kangmei’s five independent directors are each liable for between 5% and 10% of the amount, equivalent to 123 million yuan to 246 million yuan, according to an exchange filing. They collected less than 200,000 yuan in annual director fees from the firm.

It’s rare for independent directors to be ordered to compensate investors in a civil litigation in China. The mass departures highlight a growing wariness among corporate executives as Chinese regulators crack down on the nation’s private sector, targeting industries from technology to education and more.

The securities regulator said it supported the court’s decision in one of China’s biggest fraud cases, which also saw Kangmei’s former chairman sentenced to 12 years of imprisonment. The watchdog had earlier vowed “zero tolerance” for market misconduct at its mid-year meeting.

Kangmei in 2019 disclosed that it had overstated its cash positions by $4.3 billion using false documents and transaction records — an amount one lawyer said was unprecedented in China. The firm admitted to “serious” deficiencies in its corporate governance and internal controls.

Most firms cited personal reasons in recent filings for the resignation of their independent directors. In some cases, that left companies short of the mandatory requirement of having at least 1/3 of board members as independent directors.

In a previous clampdown in 2016, China targeted academics who sit on the boards of listed firms. That followed a 2013 ban on top government officials holding paid corporate positions as part of the nation’s anti-corruption drive. Four of the five independent directors from Kangmei teach at domestic universities, local media reported.

Most Read from Bloomberg Businessweek

How Child Care Became the Most Broken Business in America

Wildfires Are Getting Worse, and One Chemical Company Is Reaping the Benefits

Boeing Built an Unsafe Plane, and Blamed the Pilots When It Crashed

©2021 Bloomberg L.P.

ShareTweetPin

Related Posts

Investors see little to be gained in stocks the rest of the year, favor dividends, CNBC survey shows

by
June 30, 2022
0

Traders on the floor of the NYSE, June 29, 2022. Source: NYSE (Click here to subscribe to the new Delivering...

FDA backs changing Covid booster shots to target most recent omicron subvariants

by
June 30, 2022
0

There hasn't been enough research on how much protection a fourth dose can offer, medical professionals told CNBC. Justin Sullivan...

Ketanji Brown Jackson to be sworn in as Supreme Court justice, replacing Stephen Breyer

by
June 30, 2022
0

[The above live stream is scheduled to start at noon. Please refresh the page if the video isn't playing after...

The worst first half for stocks since 1970? It’s not as bad as it looks.

by
June 30, 2022
0

The headlines are everywhere: with one day left in the first half of the year, the S & P 500...

GOP megadonors turn on Trump after Jan. 6 hearings, look to DeSantis, Pence, other 2024 hopefuls

by
June 30, 2022
0

A video of former U.S. President Donald Trump from his January 6th Rose Garden statement is played as Cassidy Hutchinson,...

Next Post

Zoom on pace for its worst day ever after Wall Street slashes price targets

U.S. to release oil from reserves in coordination with other countries to lower gas prices

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com