As some listed companies are about to carry out their stock option incentive plans, the Shenzhen Stock Exchange issued two more memos related to information disclosure services, setting out detailed regulations on the processes of option registration and exercise, information disclosure and necessary materials to be presented.
According to the two memos, listed companies shall hold board meetings to authorize the incentive objects within one month after the approval of the stock incentive plans at shareholders’ general meeting, and complete the registration of options and announcement of such events. Option authorization date shall be no earlier than that when the board meeting is held to deliberate the option issue. When all conditions are met, the board shall convene to discuss the option exercise issue and announce the related result; then companies concerned shall submit application materials for option exercise. In addition, independent directors, supervisors and the remuneration panel shall verify the name list of incentive objects, with appointed lawyers presenting legal advice on the exercise of stock options. The proceeds from such exercise shall be checked by an appointed accounting house and kept in a special account.
In addition, the Shenzhen bourse also gave out instructions on information disclosure concerning such issues as earnings per share, change in shareholder equity, and change in shares under sales restrictions.
