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CHINA (SUPERVISORS AND SUPERVISORY BOARD (To examine knowledgeably the…
CHINA
INTRODUCTION
World Trade Organization
The insulation of company boards from inappropriate influence
Greater transparency and disclosure
Try to improve shareholders’ rights and protection of those rights
China Securities Regulatory Commission (CSRC)
The basic behaviour rules and moral standards
The securities supervision and regulatory authorities may instruct the company
The protection of investors’ interests and rights
State-Owned Enterprises (SOEs)
A real drain on the resources
Influence of party members at a number of levels
Aim of increasing profits
Joint stock companies
Lumbering giants with outdated machinery
Peoples’ Republic of China (PRC)
To expand the economy
To modernize its industry and other sectors
To move towards a socialist market economy
SHAREHOLDERS AND SHAREHOLDERS' MEETINGS
Establish communication channels with shareholders
Shareholders should be informed of significant matters
Liable to pay compensation if they breach laws and regulations
Equal rights
Treated fairly
Role of institutional investors
Remuneration
Appointment of directors
PERFORMANCE ASSESSMENT & DISCIPLINARY SYSTEMS
Problem with appointments
Influence and a mechanism is needed to isolate
Demand from employees
Compensation for management personnel
Be evaluated by a combination of self-assessment and peer review
A fair and transparent procedure
STAKEHOLDERS
Environmental protection
Public interests of the community
Concerned with the welfare
Respect the legal rights of the various stakeholder groups
Maximizing the benefits of shareholders
Provide them with information as appropriate
To provide feedback on various issues
DIRECTORS AND BOD
Faithfully, honestly, and diligently perform their duties
Devote adequate time to their role
Suitably qualified with appropriate skills and knowledge
To attending board meetings
Should attend appropriate training sessions
Shall be concerned with the interests of stakeholders
Shall treat all shareholders equally
LISTED COMPANY AND ITS CONTROLLING SHAREHOLDERS
Initially nominate the candidates
Interests by adversely restructuring assets
Should not act in a way that is detrimental to shareholders’ legal rights
To act independently of the controlling shareholders
SUPERVISORS AND SUPERVISORY BOARD
To examine knowledgeably the company’s financial matters
Accountable to shareholders
Supervise effectively
Supervising corporate finance
Overseeing the directors’ and managers’ performance
Protecting the company’s and shareholders’ legal rights and interests
Professional knowledge or work experience
Appropriate information
INFORMATION AND DISCLOSURE
Curbing abusive related party transactions
Enhancing the quality of boards
Same access to information should be available to all shareholders
Curbing market abuse
Improving shareholder protection