Study On Legal Responsibilities Of Sponsor's Misconduct

With economic development,an increasing number of companies have the expectation to go public to improve their own competitiveness,and the sponsor is a subject qualified for sponsorship expressly specified in the laws of China.“Due Diligence and Good Faith” has become a principle standard for regulators to judge the sponsor's behavior.Lessons are drawn from overseas sponsor systems and legal responsibilities,such as the sponsor system of Britain,to condemn sponsors in misconduct and cancel the sponsor's qualification;the sponsor system of the United States shares the sponsor's legal responsibilities.For the sponsor system of Hong Kong,sanction measures for sponsor's misconduct include penalty,cancellation of licenses or criminal proceedings.The sponsor system of China is of some deficiencies and problems about legal responsibilities for misconduct.For civil responsibilities,the sponsor's entity responsibility boundary is unclear,and not all rules and principles are reasonable.For administrative responsibilities,the intensity of punishment is improper,regulatory measures are limited and incentive mechanisms are absent.For criminal responsibility distribution,laws for such behavior adjustment in China are intersectional;for instance,the articles of Securities Law and the Criminal Law are not completely consistent;the fine is specified generally.For this purpose,improvement suggestion is proposed: for civil responsibilities,due to relatively general provisions,it is suggested that the affirmation of the sponsor's civil responsibilities should be detailed and responsibility sharing should be defined;for administrative responsibilities,the issuer's responsibilities and recovery problems upon indifference should be distinguished,the sponsor may be prohibited from access to market and economically fined at a higher level;for criminal responsibilities,terms and articles should be improved and the fine amount should be defined based on loss.