V. The Supreme People’s Court Published its Third Group of Guiding Cases.
The Supreme People’s Court published the third group of guiding cases on September 28, 2012. Four cases were published, including two civil cases and two criminal cases. The two civil cases mainly concern the concrete application of the Company Law and further clarify the scope of judicial review for litigation to cancel company’s resolutions and shareholder liability for liquidation. The two criminal cases concern new methods of embezzlement and corruption and limited stay of execution with reprieve.
(From www. chinacourt. org)
VI. The State Administration of Taxation Issued the Draft of Administrative Measures for Tax Certificates for Public Opinions.
On October 19, 2012, the State Administration of Taxation issued the Draft of Administrative Measures for Tax Certificates on its website for public opinions. The public can log in the website of the State Administration of Taxation or the government legal system information website to submit their opinions through the online system or by email or letter. The deadline for public opinions is November 16, 2012.
(From the website of the State Administration of Taxation)
VII. The Ministry of Human Resource and Social Security’s Labor Wage Research Institute Issued the Report on Wage Development in China 2011.
Recently, the Ministry of Human Resource and Social Security’ the Labor Wage Research Institute released the Report on Wage Development in China 2011 (“2011 Report”). The 2011 Report has five sections with twenty-seven chapters and mainly gives a comprehensive description of income distribution in 2011. The 2011 Report points out that the wage in some industries increased too rapidly. The 2011 Report also notes that the largest gap between senior management and farmers is 4553 times. Finally, the 2011 Report notes that within companies, the growth of wage of the senior management has greatly outpaced that of general employees, which has become a hot topic, gainingthe attention of the media and public. The 2011 Report is a set-priced publication.
(From the comprehensive reports)
VIII. China and the United States Finalized a Agreement on Audit Observance.
It is reported by Reuters that on October 9, US regulators finalized an agreement with China allowing the United States to observe corporate audits in China. The Public Company Accounting Oversight Board (PCAOB) announced the agreement and said that the relevant observance is expected to take place in the next several months. One week later, the Xinhua News Agency reported that the China Securities Regulatory Commission confirmed that it, together with the Ministry of Finance, has concluded an agreement with the PCAOB to let the PCAOB send staff as observers to China to observe the examination made by China on the quality control of accounting firms in China that are registered in the United States. However, the China Securities Regulatory Commission pointed out that the purpose of the observance is to allow the PCAOB to understand China’s examination procedures and methods—the observance is not examination of accounting firms, and it shall not become any form examination, joint examination, or observation report. It also is not to be a concrete audit. The PCAOB observers shall abide by the working model and procedures decided by China and not receive any documents or materials.
(From the website of Reuters and Xinhua News)
Quoted from DeBund Newsletter, Nov.
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