Caixin
Nov 20, 2021 06:35 AM
BUSINESS

Kangmei Verdict Spurs Wave of Independent Directors to Quit

A court ordered Kangmei Pharmaceutical to pay $385 million to more than 50,000 investors as compensation for losses on its stock related to a massive fraud.
A court ordered Kangmei Pharmaceutical to pay $385 million to more than 50,000 investors as compensation for losses on its stock related to a massive fraud.

Outside board members of about a dozen publicly traded Chinese companies quit after a court found independent directors of Kangmei Pharmaceutical Co. (600518.SH) partially liable in the drugmaker’s massive fraud.

The wave of resignations may have been triggered by the court’s finding in a class-action lawsuit against scandal-plagued Kangmei last week, a board secretary of a publicly listed company told Caixin. Ordinarily, outside directors of publicly traded companies tend to quit at year-end or before companies’ annual reports, the person said.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
PODCAST
China Stories: The Rural Hardship Behind the Mine Murders That Shocked China
00:00
00:00/00:00