According to the relevant provisions of the information disclosure system of listed companies in China, listed companies must publish financial reports regularly. China also has strict supervision over listed companies. Relevant departments will punish listed companies once they find financial fraud.
In case of financial fraud, investors can claim compensation from audit institutions through legal channels, and the qualifications of relevant auditors may also be cancelled and a certain fine may be imposed.
The Supreme People's Procuratorate, the Ministry of Public Security and the China Securities Regulatory Commission jointly issued the Supplementary Provisions on the Prosecution Standards for Economic Crime Cases (hereinafter referred to as the Supplementary Provisions), which stipulated the prosecution standards for cases of illegal disclosure and non-disclosure of important information.
It is clearly pointed out that companies and enterprises with information disclosure obligations according to law will be investigated for criminal responsibility if their assets increase or decrease by more than 30% of the total assets disclosed in the current period.
The punishment for financial fraud in the Company Law is that the financial department of the people's government at or above the county level shall order the company to make up the amount that should be withdrawn, and may impose a fine of less than 200,000 yuan on the company. If a company engages in business activities unrelated to liquidation during the liquidation period, it shall be given a warning by the company registration authority and its illegal income shall be confiscated.
Second, how to report the false business of listed companies?
The methods of finding false business reports of listed companies are as follows: you can go to relevant departments to report to relevant financial or major management of listed companies, and report to relevant audit companies of listed companies. After receiving the report, the relevant departments will send special personnel to investigate. In order to protect their personal safety, it is recommended that informants report anonymously.
What are the consequences of financial fraud of listed companies? The consequences of financial fraud of listed companies are very serious, which will also hit the confidence of investors and bring adverse effects to the market economy. People who want to investigate the legal responsibility of listed companies for financial fraud affecting their rights and interests, but don't know what to do, can come to a lawyer.