Chinese companies are rushing to protect their executives from potential lawsuits as Beijing deepens its crackdown on corporate misbehaviour.
A record number of listed companies in the world’s second-biggest economy have said this year that they will buy insurance policies intended to shield against the possibility of directors and officers being sued by shareholders or customers.
That has come as China’s stock market regulator has stepped up efforts to root out corporate malfeasance, disciplining an all-time high of nearly 300 companies in the first four months of the year for reasons including accounting fraud and insider trading.
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