BIZCHINA / News |
Executives of listed companies subject to new lockup rules(XFN-Asia)Updated: 2007-04-10 16:44 The China Securities Regulatory Commission (CSRC) said it is requiring mandatory lockup periods for certain share exercises by directors, supervisors, or senior executives of listed companies. According to rules announced by CSRC, such officials are subject to a one-year lock-up period after the listing of the firm's shares. The officials will not be permitted to transfer shares in a company within half a year after stepping down, or within a period pre-specified in the exercise agreement, whichever is longer. They are also restricted to transfers of no more than a quarter of their shareholdings during each year, CSRC said. Listed companies can also add other conditions, CSRC said. Parties owning more than 5 percent of a listed company who sell stock within six months, or buy stock six months after a sale, are to surrender gains from such transactions to the company. The rules also provide two days for the disclosure of share transactions by such officials. (For more biz stories, please visit Industry Updates)
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