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            Protecting Investors

            The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in China.?


            What corporate body provides legally sufficient approval for the transaction? ?
            ●Immediate disclosure to the public and/or shareholders?
            ●Disclosures in published periodic filings ?
            ●Disclosures by Mr. James to board of directors?
            ●Requirement that an external body review the transaction before it takes place?

            Director Liability

            ●Shareholder plaintiff's ability to hold Mr. James liable for damage the Buyer-Seller transaction causes to the company. ?
            ●Shareholder plaintiff's ability to hold the approving body (the CEO or board of directors) liable for damage to the company.?
            ●Whether a court can void the transaction upon a successful claim by a shareholder plaintiff ?
            ●Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff ?
            ●Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff?
            ●Whether fines and imprisonment can be applied against Mr. James ?
            Shareholder plaintiff's ability to sue directly or derivatively for damage the transaction causes to the company?

            Shareholder Suits

            ●Documents available to the plaintiff from the defendant and witnesses during trial ?
            ●Ability of plaintiffs to directly question the defendant and witnesses during trial?
            ●Plaintiff can request categories of documents from the defendant without identifying specific ones ?
            ●Shareholders owning 10% or less of Buyer's shares can request an inspector investigate the transaction?
            ●Level of proof required for civil suits is lower than that for criminal cases?
            ●Shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit?
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            1 Protection Against Intellectual Property Rights Infringement 7745

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