Research On The Structure Of Sponsor System

This paper made a summarization of the structure of Chinese sponsor systembased on the analysis of three relationships, including the relation betweensupervision authorities and sponsors, the relationship between sponsors and otherintermediary agencies, and the relationship between sponsor institutions and sponsorrepresentatives.The First Chapter is on the relationship between supervision authorities andsponsors. According to the research on the history of Chinese stock offering system,the sponsor owners a special status under current Chinese sponsor system, for it isempowered by the China Securities Regulatory Commission (CSRC) of certainsupervision power. The special status displays in four aspects, including theresponsibilities of sponsors, the leadership of sponsors among intermediary agencies,the communication channel with supervision authorities, the way of supervision tosponsors.The Second Chapter is on the divide of responsibilities of intermediary agencies,which has two aspects, that is the scope of their work and the separation of legalliabilities. The current sponsor fails in making detailed criterion on the divide ofresponsibilities based on the differences of duties of care, the special duty of care ofprofessionals and the common duty of care of common persons, on different kind ofissues. Therefore, the prudently examination responsibility to other intermediaryagencies causes certain problems in practice. For the other side, the current Sponsorsystem does not make a clear separation on the legal liabilities among intermediaryagencies, which makes the separation of liabilities is far from a clear cut. Then thispaper put forward certain principles on the divide of responsibilities of intermediaryagencies.The Third Chapter is on the relationship between sponsor institutions and sponsorrepresentatives. Dual sponsor system makes the sponsors rely the sponsor representatives in a large extend in the performance of the sponsor responsibilities,which weakens the internal control system of sponsor institutions.To sum up, sponsors are the leader of intermediary agencies under the currentChinese Sponsor system, for its special status, which takes joint responsibilities withother intermediary agencies, whose responsibilities are shared by sponsor institutionsand sponsor representatives.The Fourth Chapter set forth certain suggestions on the restructure of ChineseSponsor System, including turning the special status of sponsors into common marketintermediary agencies, separating the responsibilities of intermediary agencies clearlyand turning the dual sponsor system into single sponsor system.