The China Securities Regulatory Commission has launched a special campaign on listed company governance, urging fraudulent companies to recover excess executive performance bonuses.

Mars Finance News: On April 10, the China Securities Regulatory Commission announced that it has launched a special campaign on corporate governance for listed companies starting in April. The campaign focuses on eight areas. First, improving the performance capabilities of the company secretary. Develop and issue the “Regulations on the Supervision of Listed Company Board Secretaries.” Urge companies with long-term vacancies of the secretary to hire promptly, and replace those who do not meet the requirements according to law. Second, support third-party nominations of independent directors. Support the Investor Service Center to publicly nominate through open solicitation and joint exercising of voting rights, encouraging participation from public fund managers. Third, support special audits by the audit committee. Focus on issues such as annual report and internal control audit non-standard items, financial doubts, etc. Support the audit committee in reporting to regulators. Fourth, urge companies involved in fraud to recover excessive executive performance bonuses. Urge listed companies to improve internal compensation management systems. For companies involved in financial fraud with pay linked to performance, urge recovery of excess executive compensation corresponding to false performance. Fifth, urge major shareholders to return misappropriated funds. While strictly punishing violations, support the board of directors, audit committee, and other major shareholders in civil claims to actively safeguard company interests. Sixth, support the Investor Service Center in exercising shareholder rights. Improve the targeting and effectiveness of exercising rights, forming an organic supplement to administrative supervision. Seventh, guide eligible listed companies to strengthen the integration of business and financial systems. Encourage enterprises to optimize management processes through digital means, improve the consistency of business data and accounting data, and enhance internal control effectiveness. Eighth, organize training on the “Code of Corporate Governance for Listed Companies.” (Securities Regulatory Commission website)