SFC clear: Corporate Governance rectification deadline Nov. 30.

SFC clear: late will not accept equity incentive and refinancing applications <P> China Securities Regulatory Commission recently issued a notice clear after November 30 this year, the governance structure of the remaining issues pending the completion of rectification and other corporate governance issues of listed companies, .The SFC will not accept its equity incentive and refinancing applications. .For application materials have been received and will be focused on the audit process. .<P> Yesterday (25) released the "China Securities Regulatory Commission", the Commission proposed that listed companies in 2007 to strengthen corporate governance to carry out special activities, exposed the governance structure of listed companies, some existing .common problems, such as: controlling shareholders of listed companies due to interference caused by the independence of the offside missing; unclear responsibilities of independent directors, the Board operate under the Professional Committee of formality and so on. .<P> Order to further improve corporate governance, the Commission decided to strengthen corporate governance in 2007 on the basis of results of specific activities, such activities continue to deepen. .Involved three major tasks include: controlling shareholders of listed companies and the actual controller acts to enhance the independence of listed companies; consolidate debts results of listed companies, the establishment of prevention of major shareholders of listed companies take a long-term funding mechanism to strengthen the large shareholders and .deliberately takes its subsidiary companies listed on the investigation and handling of company funds, penalties; sensitive information of listed companies to strengthen internal investigation, collection, disclosure mechanism, to further standardize information disclosure of listed companies. .<P> Special events this year to deepen several important time, the Commission suggested that listed companies should be July 20 this year, ending June 30 of the Corporate Governance Report rectification rectification of the items listed are described, and .Board resolution of the publicly disclosed by Exchange Web site. .Topics include: deadline for correction if the problem is the deadline to complete the rectification, the reasons for and the company did not complete the measures to be taken (including punishment of those responsible for corrective measures); continuous improvement of the rectification effect of the problem and the company's improvement plan the next step. .Rectification of corporate governance of listed companies should note submitted to the local agency of the review, without objection before announcement through the Stock Exchange Web site. .In addition, the listed company shall, November 30, 2008 to complete the rectification report on corporate governance matters included in all of the rectification work. .Rectification is not completed within the deadline, and all over the agency of persons responsible will meet with corrective remarks reminded letter issued regulatory concerns, in writing, criticism of internal communications to inform local governments and related departments and other measures to urge the company effective rectification. .Commitment for the rectification of the items listed company refuses to rectification and unwarranted, the Commission will have responsibility for the company and the imposition of the relevant rectification ordered to make corrections, denoted by credit files, criticized, and identified as appropriate candidates for such regulatory measures Shichangjinru .. .<P> Addition, this year June 30, due to mergers and acquisitions and new market without the 2007 special events corporate governance of listed companies, should be July 31, 2008 to complete self-examination and self-examination and disclosure of the exchange site .reports and rectification plans, and in October 31, 2008 disclosure of the rectification report. .<P> At the same time, "Notice" also requires listed companies to further improve the internal control system, improve the accountability mechanisms that regulate related party transactions, the establishment of its subsidiary companies to prevent the occupation of a large shareholder funds of listed companies, listed companies against the interests of long-term mechanism .. .Listed companies should report regularly to the local agency of financial transactions with related parties situation. .Place occupied by the listed company shall immediately recover the use of funds, regulators will start the record for audit procedures. .<P> To improve the information disclosure system, the "Notice" requirements listed in the "Information Disclosure Management System" in the preparation of periodic reports, review, disclosure procedures, the report of major issues, transfer, audit, disclosure procedures, shareholders, the actual .controller information inquiries, management, disclosure, disclosure of accountability mechanisms to be further clarified. .<P> "Notice" stressed the sensitive information of listed companies should strengthen the investigation, collection, confidentiality and disclosure system to reduce insider trading, price manipulation, the effective protection of the interests of small investors. .</ P>.