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Legislature mulls change in Criminal Law
(Xinhua)
Updated: 2006-01-08 10:19

China's national legislature is deliberating amendment to its Criminal Law to include tough penalties for wrongdoings committed by senior managers of listed firms or securities firms, a legislator said Saturday.

Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress, said that under the proposed amendment, senior managers of listed firms and securities firms who deliberately manipulate their firms by taking advantage of their managerial positions will pay not only fines but penalties of imprisonment.

Under the current laws, the maximum penalty on senior managers is cancellation of their qualifications for practicing in the same business, he said.

Addressing the 10th Capital Market Forum held by the Chinese People's University and China Securities Journal, Cheng said the criminal penalties are needed to punish those managers for their wrongdoings.

The actual holders of controlling shares of listed firms and those that control the listed firms will also face criminal penalties under the amendment tabled to the national legislature, said Cheng.

The amendment has first been reviewed by the legislators, he said.



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