Magical Trade
Monday, May 29, 2023
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Magical Trade
No Result
View All Result
Home Trade News

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

by
November 23, 2021
in Trade 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

TSMC or Samsung? One chipmaker is the better play on A.I., geopolitics and earnings, analyst says

Spain’s conservative PP elbows Socialists out in regional elections

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

TSMC or Samsung? One chipmaker is the better play on A.I., geopolitics and earnings, analyst says

by
May 29, 2023
0

The Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics have emerged as two key players in the increasingly competitive landscape...

Spain’s conservative PP elbows Socialists out in regional elections

by
May 29, 2023
0

The president of the People's Party of Mallorca and candidate to the Consell, Lloren? Galmes, during the monitoring of the...

Iran exchanges heavy gunfire with Taliban on Afghan border, escalating tensions over water rights

by
May 29, 2023
0

In this photo taken on February 18, 2022 a Taliban flag (L) and an Iranian flag wave at the zero...

‘It’s not a bubble yet’: Wharton’s Jeremy Siegel predicts Big Tech boom fueled by A.I.

by
May 29, 2023
0

Wharton professor and renowned economist Jeremy Siegel is bullish on a Big Tech boom fueled by artificial intelligence despite concerns...

Traders turn optimistic on debt ceiling deal — and one strategist says it’s a ‘market opportunity’

by
May 29, 2023
0

WASHINGTON, DC - MAY 26: U.S. Speaker of the House Rep. Kevin McCarthy (R-CA) speaks to members of the media...

Next Post

‘Indentured servitude’: low pay and grueling conditions fueling US truck driver shortage

I want to refinance my mortgage, but I’m about to turn 70. Is it wise to refinance at my time of life?

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

  • Fund manager believes FAANG is dead — says now it’s all about MANTA

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Bank of America names its top global tech stocks — including one it says has upside of 100%

    0 shares
    Share 0 Tweet 0
  • This idiot-proof portfolio has beaten traditional stocks and bonds over 50 years

    0 shares
    Share 0 Tweet 0
  • Josh Brown says Nvidia’s potential is ‘scary’ ahead of a potential AI boom

    0 shares
    Share 0 Tweet 0
  • Home
  • Trade News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.magicaltrade.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.magicaltrade.net