Hao Xuguang: Innovating the responsibility traceability mechanism might as well start with semi-anonymous voting
(Source: "Shanghai Securities News" 2014Year06month10日）
When establishing a tracing mechanism for fraudulent behaviors of listed companies and intermediaries, there must be institutional innovation and operable methods. In certain links involving specific responsibilities that require voting, a semi-anonymous voting system can be used. In this way, the advantages of anonymous voting are brought into play while the disadvantages of anonymous voting are avoided.
From2012The listing of Green Dadi with false packaging was terminated in 2016, followed by the listing fraud of Xindadi, and then the financial fraud of Nanfang Co., Ltd., which leads to an urgent topic in market supervision: w88 casino games login often takes a long time to verify illegal activities. While administrative approval is gradually relaxed, how to strengthen supervision during and after the event under the registration system in the future? In particular, how to strengthen the tracing of "old accounts" to eliminate the chance of offenders? The author believes that this requires institutional innovation in the traceability mechanism, and semi-anonymous voting should be a better choice.
False listing of listed companies is the most common manifestation of fraudulent infringement. In many cases, market manipulation and insider trading are also associated with, or manifest in, misrepresentations. Therefore, when establishing a traceability mechanism, w88 casino games login is important to determine the standards for infringement. Many torts manifest themselves as negligence, thus constituting non-fraudulent negligence torts. Generally speaking, the tort of negligence refers to the violation of reasonable legal obligations, which harms the interests of other market participants. In other words, the tort of negligence involves damage that results from the negligent person's failure to perform an appropriate duty required by law. Based on the existence of a reasonable causal relationship, the negligent person should bear legal liability for the damage caused by negligence or negligence. To be more specific, we also need to distinguish between active and passive negligence. The liability must be retrospective for active negligence; if w88 casino games login is passive negligence, the liability should also be retrospective, unless w88 casino games login can be proved that there is a reasonable and irresistible reason for such passive negligence.
Nanfang Co., Ltd.2006New Year's Eve2010years in a row5Fake year, fictitious profits3.44billion yuan is the epitome and typical example of financial fraud by listed companies. In addition to investors being dissatisfied with the low cost of counterfeiting and illegal activities, there is also a lot of controversy over whether Nanfang shares should be delisted directly after retroactive adjustments for consecutive years of losses. Some people believe that w88 casino games login should be delisted directly. But looking at the reality, the biggest victims of delisting are investors who hold Nanfang shares. w88 casino games login is obviously unfair if the violators do not bear responsibility but pass the losses on to investors. w88 casino games login can be seen that the key to retroactive punishment is to clarify the responsibilities of all parties and form an effective liability traceability mechanism.
To clarify responsibilities, we must first distinguish between active and passive negligence. If the failure of a listed company is due to systemic risks or problems with the company's business model, investors will naturally need to bear the responsibilities that shareholders should have. If a listed company commits financial fraud, packages its listing, or maliciously delists, the losses should not be borne by investors, and the listed company and intermediaries should bear liability for compensation.
The traceability mechanism not only traces the responsibilities of listed companies, but also traces the responsibilities of intermediary institutions, such as sponsors, accounting firms and law firms. w88 casino games login is also necessary to trace the responsibilities of the issuance review agency. The above three intermediaries should be independent of each other, and each should issue professional opinions on companies to be listed through independent due diligence. Relevant research shows that the reason why most small and medium-sized investors choose to invest in a listed company is not because they carefully read the company's annual report, but often because they believe in the highly credible "unqualified audit opinion" issued by a certified public accountant. Due to information asymmetry and limitations of their own abilities, small and medium-sized investors have neither the willingness nor the ability to directly verify the reliability of corporate financial reports. Even if they are willing and able, the cost is too high and the feasibility is lost. Therefore, the existence of an independent, objective and impartial CPA audit mechanism, as well as the good reputation and image of CPAs in the past, make most small and medium-sized investors believe that CPAs are credible. Once relevant accounting firms commit misrepresentations, fraud and other violations, w88 casino games login will cause great harm to small and medium-sized investors. For law firms, this goes without saying. If organizations and individuals engaged in legal affairs lose their integrity, who else can be trusted in the world? Therefore, intermediaries must be traced seriously.
In addition, the author would like to add that a prosecution system with no time limit should be set up. As long as there is fraud on the market, no matter how long the effective period is, everyone should be held accountable. Issuers, intermediaries and exchanges shall perform their duties strictly in accordance with relevant systems; any violation of duties, deception or malfeasance shall be strictly investigated by the China Securities Regulatory Commission, and those involving criminal law shall be investigated and handled by the judicial authorities. Only by following the principle of fairness during the traceability process, and whoever violates the rules must bear responsibility, can w88 casino games login be possible to prevent and deter violations.
Of course, the traceability referred to here should only apply to fraud in the listing process of listed companies. w88 casino games login applies to irresponsible, false statements, fraud and other violations by intermediaries such as accounting firms, securities firms, and law firms during the listing process of listed companies. w88 casino games login also applies to irresponsible and possible other violations by the review department during the review process. As for listed companies that commit other violations after listing, additional supervision mechanisms should be designed.
When establishing a traceability mechanism, there must be institutional innovation and operable methods. In certain links involving specific responsibilities that require voting, a semi-anonymous voting system can be used. In this way, the advantages of anonymous voting are brought into play while the disadvantages of anonymous voting are avoided.
The premise of adopting an anonymous voting system is that voters have enough "ability" and "willingness" to make fair, correct and reasonable judgments. But there may be a problem with "will." In the absence of reputation constraints, institutional constraints, interest entanglements and conflicts, the incentives they receive can ensure that willing voters make accurate and fair judgments. Once there is the temptation of huge interests, in order to pursue their own interests, w88 casino games login will be difficult for voters to ensure the "will" of voters to make fair and accurate judgments in the absence of institutional constraints. Especially in the process of listing a listed company, the voting process implies huge interests, and w88 casino games login is difficult to ensure that voters have a high sense of responsibility. There are so many cases of "performance changes" of listed companies, which has already proven this.
Semi-anonymous, requiring anonymous voting, stipulates that within a certain period of time (w88 casino games login can be several years, or w88 casino games login can be decades), the votes are sealed and no one can open them. After the prescribed confidentiality period or there is a major problem with the motion passed by the vote, that is, if the listed company's false listing behavior of the year is exposed within a certain period of time, the anonymous voting results need to be opened according to the pre-agreed legal procedures, and the anonymous voting results must be checked to find out who voted in favor that year. This kind of post-event deterrence should increase voters' sense of responsibility and enhance their "willingness" to make fair, accurate, and reasonable judgments.
For any decisive voter, both incentives and constraints are needed. Therefore, the use of a semi-anonymous voting system is both a constraint and a protection. (Professor Hao Xuguang, w88 casino of International Business, w88 casino)
Attachment: Original report link
http://news.xinhuanet.com/finance/2014-06/10/c_126600059.htm
