Among the companies registered to Kosdaq, some that don`t meet a certain level of the qualification will be dismissed immediately and the criteria of dismissal will become tougher including the extension of the responsibility of the major shareholders, etc.
On the 21st, Kosdaq Committee announced that the committee would prepare year around dismissal system of insolvent companies from Kosdaq in November and practice it from next year to stabilize Kosdaq market.
The committee will dismiss the companies that don`t reach a certain level of share price foe a certain period, stop the operation, don`t submit the report on business operation without suspension period. The details haven`t been yet decided, but if the stock price maintains below 30-50% of par value for a certain period, it will be included in the subject to be missed.
To reduce the process period of dismissal, the committee decided regulation that if the reason for the dismissal is clear, the company can`t appeal review, and the dismissal period will be reduced from 15 days to 7 days.
With the criterion, the committee will make a criterion to distinguish bankrupt company from healthy company. The committee considers making an index composed of only healthy companies for the criterion.
Chung Eui-dong, the Chairman of Kosdaq spoke The committee will make a method for investors to distinguish bankrupt company from healthy company at any circumstance.
Major shareholders and investment companies are prohibited to have purchasing and selling contracts with a pre-condition of holding for a certain period during the legal transaction suspension period.
When a registered company has monetary transaction with major shareholder, it should announce the fact at that day. Additionally, `Legal Protection center for Minor Shareholders` will be established for minor shareholders who suffer financial damage from unfair trade.