 Anchor:
Many top executives in listed companies have recently resigned in order to sell their shares. According to published information, these former executives have walked away with anywhere between one million and one hundred million yuan.
The issue has aroused heated public discussion. Let's go to our reporter to find out more.
Reporter:
The Legal Daily carries an article warning that the stock market cannot be used as a tool for senior executives to seek their fortunes. These people quit their jobs and sold their stocks, disregarding their companies' future developmental needs, to make a quick profit.
According to securities laws, if a shareholder who owns more than five percent of a listed company's stock buys shares and sells them within six months, the income he makes belongs to the company.
These executives gave up their jobs to bypass these rules. But their behaviors will still cause serious repercussions in the stock market. Some investors who followed suit without fully comprehending their actions lost large amounts of money.
The writer suggests that the government set up more stringent regulations and prolong the original six-month time limit to a year or more.
A comment in the Shanghai Business Daily says that the executives' behavior is understandable. The immediate financial gains made them lose their positions and unpredictable futures. Since most of these people are talented, finding another job will not be difficult for them.
The writer says the executives did not break any laws or regulations, and points out that they did not infringe on other stockholders' rights. According to a source, these former executive did not secretly raise stock prices and after their resignations, the prices of some stocks even jumped up greatly. In this way, the only victims in the matter are those companies that suffered major personnel changes in the upper management levels.
An article in the Guangzhou Daily suggests taxing executives who employ similar tactics to demonstrate equal wealth distribution. Asking the rich to contribute more is a basic tenet in the construction of a harmonious society. Asking top executives with high earnings potential to pay taxes is reasonable. Meanwhile, since they don't buy and sell stock very often, calculating how much tax they should pay is easy.
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