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

Discussion in 'Economics' started by themickey, Nov 22, 2021.

  1. themickey


    A $391 Million Fine Has China’s Board Members Quitting En Masse
    Bloomberg News Mon, November 22, 2021

    (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.

    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.......

    zdreg, TooEffingOld and Nobert like this.
  2. Nobert


    Is there a list of those ~20 names ?

    Not to short, but would be cool to look out for similarities in their balance sheets, even in patterns of lies, in investor presentations, annual reports etc.
  3. VicBee


    They want the money and prestige but not the responsibilities.
    cobco likes this.
  4. xandman


    The US should make Board Members more liable as well.
  5. JSOP


    Dunno why they would become directors in the first place when they know they are just there for window dressing giving an impression of being capable of "autonomous decision-making" in "market economy" when everything is controlled by the government. All of the companies incorporated in China are required to have some kind of shareholders from the government and will have to be members of some organizations of the government. So those directors really have very little say in those companies' matters.

    I mean it's funny that the government is cracking down on private companies for corruption and whatever it's as if the state-run companies are all clean and incorruptible.
    Last edited: Nov 22, 2021
    beginner66 likes this.
  6. JSOP


    US does.
  7. nitrene


    No they don't. If they did the thieves that looted GE would be in jail for life not to mention that scumbag Immelt who destroyed the company.

    All the Titans of America believe in is endless bailouts from their political connections.
  8. JSOP


    The thieves from Enron who defrauded investors went to jail like many others. The key is to prosecute them effectively. You think those from GE embezzled funds? Prosecute them or sue them! There have been many successful class-action lawsuits against those company directors and chiefs to hold them responsible and accountable for what they did.
    Last edited: Nov 23, 2021
  9. Overnight


    Smells like you watch the History Channel. :)