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