State Environmental Protection Administration, Guiding Opinion on Strengthening the Regulatory Work on Listed Companies in Respect of Environmental Protection

国家环境保护总局关于加强上市公司环保监督管理工作的指导意见

April 02, 2008 | BY

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SEPA requires listed companies to disclose information on serious environmental violations.

Clp Reference: 1600/08.02.22 Promulgated: 2008-02-22

Issued: February 22 2008

Main Contents: When a major event that may have a relatively major impact on the trading prices of a listed company's securities and derivatives and that is related to environmental protection occurs, which is not yet made known to investors, the listed company shall make a disclosure immediately and explain the cause of the event, the current condition and the impact that may be resulted. Major events mainly include:

(1) a recently promulgated environmental law, regulation, rule or industrial policy that may have a major impact on the company;

(2) the company is being investigated by the environmental protection department for a violation of environmental laws or regulations, or is subjected to criminal penalty or major administrative penalty;

(3) the company has a major investment such as a new construction, renovation or expansion project that has a major impact on the environment;

(4) the company has been ordered by the relevant people's government or department to carry out rectification within a time limit, cease operations, move or shut down for reasons of environmental protection;

(5) due to environmental issues, the company is involved in a major litigation or its major assets are sealed up, distrained, frozen, or mortgaged or pledged; and

(6) other major environment-related events stipulated in the Measures on the Disclosure of Environmental Information (Trial Implementation) that may have a relatively major impact on the trading prices of the listed company's securities and derivatives.

The shareholders, media and the society shall have the right to report the failure of listed companies to disclose environmental information in accordance with provisions (Article 2).

Related Legislation: State Council, Decision on Strengthening Environmental Protection Through Implementing Scientific Outlook on Development, Dec 3 2005; State Council, Issue of the Circular on a Comprehensive Work Proposal on Energy Conservation and Reduction of Waste Discharge, Jun 3 2007; Measures on the Disclosure of Environmental Information (Trial Implementation); Circular on Environmental Protection Check on Enterprises Applying for Listing and Listed Enterprises Applying for Re-financing, 2003; Circular on Further Regulating the Environmental Protection Check on Production Companies and Other Companies of Industries that Cause Serious Pollution, 2007; Measures for the Administration of Information Disclosure by Listed Companies, Jan 30 2007, CLP 2007 No.1 p.9; and Circular on IPO Application Documents of Production Companies and Other Companies of Industries that Cause Serious Pollution, Jan 9 2008

clp reference:1600/08.02.22promulgated:2008-02-22

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