Supporting third-party nomination of independent directors, pursuing excessive executive compensation, the China Securities Regulatory Commission (CSRC) has launched a special action on the governance of listed companies.

To promote the implementation of the latest revised "Listed Company Governance Guidelines" and other institutional rules, and to strengthen the first line of defense against financial fraud, the China Securities Regulatory Commission (CSRC) launched a special action on listed company governance starting in April. The action focuses on eight aspects, including enhancing the performance of board secretaries, supporting the nomination of independent directors by third parties, supporting special audits by audit committees, urging companies involved in fraud to recover excessive executive performance pay, urging major shareholders to return appropriated funds, supporting shareholder voting rights exercised by the Investor Service Center, guiding eligible listed companies to strengthen the integration of business and financial systems, and organizing training on the "Listed Company Governance Guidelines." The CSRC initiated a special action on listed company governance Corporate governance is the cornerstone of the high-quality development of listed companies. To promote the implementation of the latest revised "Listed Company Governance Guidelines" and other institutional rules, and to strengthen the first line of defense against financial fraud, the CSRC initiated a special action on listed company governance starting in April. The goal is to leverage the capital market's role in improving corporate governance, creating a positive ecology of active participation, mutual supervision, and assisting companies in making scientific decisions. First, emphasize effectiveness. Actively promote the implementation of various systems and rules, creating a good demonstration effect. Second, focus on key areas. Focus on key areas and strive to guide standardized operations through typical cases. Third, internal and external coordination. Insist on both corporate autonomy and regulatory constraints, stimulating endogenous motivation. The action focuses on eight aspects. First, enhancing the performance of board secretaries. Draft and issue the "Regulations on the Supervision of Board Secretaries of Listed Companies." Urge companies with long-term vacancies for board secretaries to timely hire suitable candidates and replace those whose abilities do not meet the requirements. Second, supporting the nomination of independent directors by third parties. Support the Investor Service Center to publicly nominate independent directors through open solicitation and joint exercise of rights, and encourage public fund managers to participate. Third, supporting special audits by audit committees. Focus on annual reports, internal control audit non-standard matters, financial doubts, and other issues. Support audit committees in reporting to regulators. Fourth, urge companies involved in fraud to recover excessive executive performance pay. Urge listed companies to improve internal pay management systems. For listed companies involved in financial fraud and whose pay is linked to performance, urge the recovery of excessive executive pay corresponding to false performance. Fifth, urge major shareholders to return appropriated funds. While imposing strict penalties, also support the board of directors, audit committee, and other major shareholders in civil recovery actions to actively protect the interests of the company. Sixth, support the exercise of voting rights by the Investor Service Center. Enhance the effectiveness and specificity of exercising rights to supplement administrative supervision organically. Seventh, guide eligible listed companies to strengthen the integration of business and financial systems. Encourage companies to optimize management processes through digital means, improve the consistency of business data and accounting data, and enhance the effectiveness of internal controls. Eighth, organize training on the "Listed Company Governance Guidelines." The CSRC will organize and promote a number of exemplary cases, continuously deepen corporate governance regulatory constraints, create a favorable environment for the standardized development of listed companies, promote the improvement of the quality of listed companies, and facilitate the sustained stable and healthy development of the capital market. This article is selected from the "CSRC Release" WeChat public account; GMTEight editor: Chen Xiaoyi.