On October 31, 2014, partner Wu Ding was invited to a seminar held by National Equities Exchange and Quotations Co., Ltd to discuss a draft version of NEEQ trade suspension rules. Participants were mainly securities traders such as Shenyin Wanguo Securities, Guosen Securities, GF Securities and Western Securities which had the largest stakes of NEEQ-related business to date. Wu was the only representative from the legal service profession.
The participants had a heated discussion over types of suspension, conditions leading to suspension, procedures, information disclosure, investor protection and liabilities for violations. Wu offered suggestions on revising provisions of what constitutes defective corporate governance structure, time limit over information disclosure and complaint procedures for businesses faced with compulsory trade suspension. He pointed out that to ensure the legitimacy of the suspension procedures and protect the interests of minority shareholders, the information disclosure provisions of the draft should include an attorney’s witness opinion over the legitimacy of general meeting of shareholders in cases where the listed businesses voluntarily applied for suspension of trade.
Officials of NEEQ said that they would take advice from the seminar and make further improvements over the draft.
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