Research On Compliance Issues Of New Third Board Transfer Companies

The new Third Board Market is an equity exchange market established in 2012 for the construction of multi-level capital markets for small,medium and micro enterprises.It possess some special natures,includs a large number of listed companies with uneven quality,relatively lax supervision and the low cost of violations,that have caused the violation rate of the new Third Board market to be far higher than that of the Main Board or the Growth Enterprise Market.This has also caused potential risks for the New Third Board companies.In order to clarify the key compliance issues that the New Third Board companies are concerned by the CSRC,and to deal with these problems to propose effective countermeasures to improve the company's compliance.Firstly,this paper analyzes the overall non-compliance of the New Third Board market,and introduced the conditions for the transfer of new Third Board companies to the Main market.Secondly,statisticsing on the compliance issues mentioned in the feedback comments of all the new three board companies in China during the period of 2015 to 2017,the conclusions show that the compliance issues of the management and management categories are the most concerned,followed by the financial regulations,historical legacy,information disclosure and other compliance issues.Finally,through a large number of case studies and studies,the general rules for the verification of the compliance issues of the New Third Board Transfer Enterprise are summarized.(1)The truthfulness and accuracy of the financial statements are the principle that the auditing of enterprises cannot be shaken.(2)There is no room for false or improper behavior in the core business activities of companies such as procurement,production,and sales.(3)The three types of shareholders,gambling agreements,day-to-day management practices,related transactions and peer competition,etc.,as long as the company can fully prove that these matters do not constitute a major illegal act,does not constitute a major adverse impact on the company,and the company has even corrected and rectification,and even formulated rules and regulations to prevent similar incidents in the future,the company has the possibility of approval.(4)Issues such as historical evolution and raised investment projects are relatively less important.As long as a company can fully disclose related issues and reasonably explain existing problems,it will not be a substantial obstacle to the listing of the company.After in-depth study and analysis of the case of a large number of new three board transfer companies,this paper believes that the new three board listed companies should not flee market supervision with luck,but should use the standards of listed companies as soon as possible to maintain the standard operation of the company.It is the most effective way for companies to reduce the cost of queuing and improve the approval rate.Even if there is a record of historical violations,the enterprises should first face up to existing compliance issues,actively and completely disclose related issues,and in accordance with the relevant system to rectify it,even formulate appropriate measures to strengthen the standard management of the company to protect the company's interests are not being compromised.