Source: Prism (ID: lengjing_qqfinance), Wall Street Journalist
Author |邬 川
For the stock market, where the IPO is still approved, there is nothing more important and interesting than the person responsible for addressing the problem. To finance equity participation, the selection of an audit committee will be the largest regulatory variable in front of the registration system.
On the evening of November 27th, the boots finally fell. The CSRC announced the list of members of the 18th Audit Committee (attached) on the official website. Previously, members of the 17th audit committee worked for 3 months. However, according to current progress, the last session of the Audit Committee will continue until mid-December to complete the change.
A current member of the Tencent Audit Committee said the highlight of the list is that the proportion of intermediaries is higher. In his opinion, the signal issued by the regulator is that future audits will focus on compliance and disclosure, and financial indicators, such as net income, will be blurred.
A person close to the CSRC showed that the re-election of the audit committee was supported by the Chairperson Liu Xiyu, and the structural changes to the audit committee were part of the reform of the IPO, but the concept of the audit and the governing body still carried out the will of the CSRC.
“There are still many supporting systems in the capital market. For example, the delisting system is still not perfect, the top-level law needs revision, and the class trial does not need support. ” He said, but IPO reform should also be easy and complex. Break the road.
The share of intermediaries has increased, earning only 200,000 yuan a year.
53 candidates were selected for the list this year, of which 25 were from CSRC, the Shanghai and Shenzhen stock exchanges, 15 from accounting firms and 13 from law firms.
It is worth noting that the share of intermediaries is more than half. As part of the 17th Audit Committee, the share of intermediaries is only 38%, of which only 4 are from accounting firms, and 5 from law firms, and even less among staff members.
At the same time, compared to previous audit committees, the sources of intermediaries in this list of candidates are more focused and focused only on accounting firms and law firms, appraisal institutions, brokers, fund companies, colleges and universities. Other institutions are excluded.
On September 14, this year Tencent “Prism” had an exclusive report, members of the audit committee working part-time should be canceled, and the share of professional members of the intermediary managers would be increased.
On September 30, the CSRC issued a “Decision on Amendments to the China Securities Regulatory Commission to Issue the Audit Committee” in the evening and publicly expressed its views. One of them was to reduce the number of test committees from 66 to 35 and at the same time cancel. Some members may be permanent rules.
This means that 18 out of 53 candidates must be “eliminated,” and committee members will be fully engaged.
At the same time, what interests the outside world, how much money can you make as a full-time audit committee? Because half of the members previously held the posts of managers in intermediary agencies.
The aforementioned acting audit commission informed Tencent “Prisma” that the annual salary of a salary member after tax is 200,000 yuan, part-time wages, and the project can receive 300 yuan.
For members from intermediaries, once they are full-time, they need to suspend their practice in the original unit. Compared to their previous income, the salary of full-time members is very low.
However, the former member of the judicial committee of the law firm said that the opportunity to be elected to the audit committee is a very high honor, which indicates the status and professional level of the industry. "Even if the money is small, everyone is ready to do it."
How is the list of candidates selected? A compliance audit is pending.
Where did 53 lists of candidates come from?
The aforementioned current audit commission informed Tencent “Prisma” that, in general, the CSRC will notify all relevant industry associations of the start of the registration process in September and October. Then, in accordance with the size of the securities business, the association allows you to register the best intermediaries. “Intermediate agencies checked and submitted the list of associations. After the primary election to the industry association, PSRC will complete the list. ”
Many brokerage investment bankers have said that the increase in the number of intermediaries will bring more market power and expects the new audit committee to focus on compliance and trust, not just net profit and other financial indicators.
The investment agency believes that the increase in the number of intermediaries still attracts a magnifying glass to study the company's financial data. Considering old data, they still need to reform the concept of auditing and judge the future. "The strength in the meeting is still strong."
From this point of view, the aforementioned review committee does not agree. He believes that the global capital market, listing audits around compliance review and disclosure monitoring. “An increase in the number of intermediaries will certainly meet the requirements and trust, as well as encourage the company to the best.” No one else is familiar with the rules than accountants and lawyers.
In response to the suspicion that the audit committee turned over the old data, it showed that the audit management of the CSRC pays special attention to the historical evolution of the company. This is due to the fact that the history of Chinese companies is complex, and the creation of a company system is relatively small. "The law on companies was created only in the 1990s, so the CSRC’s request to verify the company's history is understandable."
He also stressed that the value of the company should be provided to investors for voting if they return to the company to assess the value, “this will be a regress of the IPO review”.
IPO fades the lake edge, part-time participants leave the stage
Another question is why the new session of the Audit Committee canceled part-time members?
The aforementioned audit committee showed that this is for the same reason as the reduction in the number of audit committees.
“Due to the increased net profit margin, many companies in service to the queue refused, and the IPO barrier barrier phenomenon was relaxed.” As soon as the number of pending projects is reduced, there is no need for so many members, and the capacity utilization rate of the full-time members is not saturated. Part-time members are not necessary, secondly, there are too many members of the management committee, and it is necessary to turn the accounting department, the law firm and the supervisory system for securities with strong business skills into established posts.
According to statistics from Prism at Tencent, only 42 of the 63 members of the 17th session took part in the review, while the remaining 21 members did not attend part-time.
Most of the former part-time members came from the National Development and Reform Commission, tax, fund companies, brokerage companies, universities, and other institutions “designed to complement the staff of the echelon.”
He also stated that former members of part-time work were not familiar with the rules. For example, NCRC is more aware of industrial logic, the university is familiar with the theory, and some fund companies are more valued for investment. From the results of the 17th member of the committee, it seems they are furnished.
He showed that the number of part-time workers who had previously participated in the trial was less. "Full-time members will open four or five trials, and part-time participants will open a trial meeting."
Therefore, based on the premise that the current situation in the queue for IPO placement is greatly facilitated, full-time committee members can cover the current rhythm of the trial and objectively no longer need part-time members.
Appendix: Candidate from the 18th Audit Committee
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