The System Of "Advance Payment" Should Protect The Interests Of Investors While Protecting The Interests Of Investors.

The new IPO regulation, which has been implemented since January 1st of this year, has made a system of "advance compensation" for the issuer's fraudulent listing.

Although the specific provisions of "advance payment" have not yet been promulgated, the disputes concerning the interests of the parties concerned have surfaced.

As for the Internet, there have been reports of dissatisfaction about the company's "five party agreement".

Since the "advance payment" is still a new thing for the A share market, there is still a lack of perfect system design. Therefore, it is inevitable to have some or some problems in the process of implementation.

In fact, who is the biggest beneficiary of this system is also worrying.

Although Wanfu Sheng Ke, although the sponsor of the Ping An Securities initiative to compensate investors 179 million yuan loss, but the Wanfu branch's delisting ended.

It can be seen that in the case of "first payment" in the Wanfu health case, the biggest beneficiaries are the counterfeiters.

Therefore, for fraudulent listed companies, they should be allowed to withdraw directly from the market instead of using the "first payment" to let the fraudulent listed companies escape the blame. Of course, there is a problem of compensation for investors in the direct delisting of the listed companies. Therefore, the "advance payment" should be used in the fraud of listed companies directly in the process of delisting, so that the meaning of "advance compensation" will not be discounted or even out of shape.

This problem is obviously "advance payment".

A problem that should be focused on.

According to the requirements of the SFC, the "advance payment" is the first time that the sponsors compensate investors based on their prior self-discipline commitments, and then recover losses from the issuers in accordance with the law.

As a sponsor, for the sake of improper injustice, it can effectively protect its own interests at the same time as the investors first compensate, and it also requires the "five party" with the issuer to sign the "five party agreement with advance compensation".

Among them, the "five party" is the issuer, the actual controller, the major shareholder, the director and the employee stock ownership plan.

According to the "five party agreement for advance payment", the five party must undertake to the sponsor, if the sponsors who are caused by serious offences such as fraud are sentenced to compensate, the five party must jointly assume unlimited joint and several liability.

The agreement also requires that, as a guarantee measure for "unlimited liability for joint and several liability", shareholders shall trustee the same proportion of shares issued to the sponsor.

And the agreement also specifically defaults that the sponsor has fulfilled his due diligence obligations.

Moreover, the practice of "pre payment" to tie the employee stock ownership plan may even jeopardize the establishment and development of the ESOP system.

The purpose of ESOP is to increase the cohesive force of enterprises, and better mobilize the enthusiasm and creativity of their employees, so as to achieve the purpose of improving the competitiveness and efficiency of enterprises.

If the employee stock ownership plan is tied up with the "advance compensation", this directly endangers the interests of employees, so employees may not participate in the employee stock ownership plan.

Therefore, the "advance payment" should not be taken.

Bundled in.

In addition,

"The sponsor does not have the problem of exemption, but only assumes different responsibilities.

After all, in the process of fraudulent listing, even if the sponsor does not participate in it, there is also a problem that sponsors fail to fulfill their duties.

In fact, it is impossible for the sponsor to cheat the issuer without due diligence.

Therefore, even if the sponsor organization has signed a "five party agreement with advance compensation" with its interested parties, it requires the parties concerned to default on their obligations such as due diligence, but this can not be an excuse for the sponsor to evade responsibility.

In the case of fraudulent listing, the sponsor can not be without responsibility.

As a sponsor, it is beyond reproach to implement the "advance compensation" and protect the interests of itself by signing the responsibility agreement.

For example, the issuers of the five party agreement, the actual controllers, the major shareholders and the "four sides" of the directors and supervisors are indeed necessary to kidnap them together to shoulder the responsibilities they need to undertake because of the fraudulent listing.

But bundling employee stock ownership plans is injuring the innocent.

Because as an enterprise employee, it is totally different from the issuers, the actual controllers, the major shareholders and the senior supervisors. They can not only control the fraudulent behavior of enterprises, but may even be completely ignorant of the fraudulent practices of enterprises.

If the enterprise fraud matters, it is also necessary to operate with the interests of employees, which is totally injuring the innocent.