Legislation roundup: SPC labour Interpretation and CSRC Guidelines for listed companies
January 25, 2013 | BY
clpstaff &clp articles &The Supreme People's Court has issued an Interpretation on criminal cases over remuneration, while the China Securities Regulatory Commission has produced Guidelines on the use of proceeds raised by listed companies
Employment
Supreme People's Court, Interpretation on Several Issues Concerning the Application of the Law in the Trial of Criminal Cases on Refusal to Pay Labour Remuneration
The Interpretation defines “labour remuneration” to include wages, bonuses, allowances, subsidies, overtime payments and wages paid in special circumstances. Hiding, destruction or alteration of accounts books, the employee register, or records of wage payments or attendance is regarded as "using methods such as diversion of property and abscondence in order to avoid paying labour remuneration".
See the digest for more details.
Further reading
PRC Employment Contract Law, Jul/Aug 2007
Implementing Regulations for the PRC Employment Contract Law, Oct 2008
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Capital markets
China Securities Regulatory Commission, Regulatory Guidelines for Listed Companies No.2 — Regulatory Requirements in Respect of Management and Use of Proceeds Raised by Listed Companies
The Guidelines allow listed companies to invest their idle proceeds in investment products that are relatively safe and liquid such as sovereign bonds and wealth management products of banks. Such investment products cannot be pledged nor can the dedicated settlement account be used for other purposes.
See the digest for more details.
Further reading
Circular on Further Regulating the Use of Proceeds of Listed Companies, Apr 2007
National Association of Financial Market Institutional Investors, Self-disciplinary Guidelines on the Credit Rating Business for Debt Financing Instruments of Non-financial Enterprises
This is the first self-disciplinary system of China's interbank market for credit rating. The Guidelines cover credit ratings paid by the issuer, credit ratings paid by the investor and credit rating initiated by the credit rating firms.
See the digest for more details.
Further reading
Measures for the Administration of Debt Financing Instruments of Non-financial Enterprises in the Interbank Bond Market, Jul/Aug 2008
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