Elizian Stock Exchange Act
Author: Pong Ninghong (Liberal Democrats)
Sponsors: Michael Vives (Liberal Democrats), Arthur Tan (Liberal Democrats), Kevin Katdare (Liberal Democrats), Li Zhang (Social Liberals), Alexander Maxwell (Social Liberals)
An Act to establish the Kentang Stock Exchange under the guidance of the Elizian Securities and Investments Commission, which would ultimately boost enterprise and consumer confidence within the Federation of Elizia. This act also aims to lay the groundwork and rules for the establishment of other stock exchanges within Elizia in future.
BE IT THEREFORE ENACTED by the Head of the State, by and with the counsel of the Government, and the authority of the Federal Parliament by virtue of the powers placed upon it by the Law, as follows:§1 - Establishment of the Elizian Securities and Investments Commission
A) The Elizian Stock Exchange Act hereby establishes the Elizian Securities and Investments Commission, where the commission shall execute certain powers allocated within this Act to ensure stability within the Securities Sector.
B) The Elizian Securities and Investments Commission (ESIC) shall be headed by a Commissioner that is nominated by the President of the Federation and voted upon by the Senate of the Federation.C) The Elizian Securities and Investments Commission shall be composed of no fewer of 3 members and no higher of 8.
- The Term of the Elizian Securities and Investments Commissioner shall last 4 Years, and is permitted to recur once.
D) The Elizian Securities and Investments Commission shall have the following executive powers to ensure that Consumer and Enterprise Confidence is maintained within the Federation;
- Members of the Elizian Securities and Investments Commission shall be appointed by the Elizian Securities and Investments Commissioner.
- Members of the Elizian Securities and Investments Commission shall be qualified at least in one of the the following fields;
- Business
- Administration of Companies
- Financial Markets
- Financial Products & Financial Services
- Law
- Economics
- Accounting
E) The Elizian Securities and Investments Commission shall advise the Secretary of Finance on its own initiative or on request as it sees fit for the benefit of the Federation.
- The Elizian Securities and Investments Commission will be granted the executive powers to halt stock trading of any company if it finds the trading patterns to be irregular or suspicious, and has the right to detain and prevent any suspected insider trader from leaving the country by issuing a warrant of arrest.
- The Elizian Securities and Investments Commission will be granted the executive powers to force investigations into companies without their prior approval if it deems the company to be violating the rules set out by the commission.
- The Elizian Securities and Investments Commission will be granted the executive powers to bar traders from trading if it deems them to have violated the rules set out by the commission
- The Elizian Securities and Investments Commission will be granted the executive powers to force a company to halt all operations outside stock trading if it deems the violation of rules within the stock market serious enough that it would jeopardise operations outside the stock market.
§2 - Establishment of the Kentang Stock Exchange
A) The Elizian Stock Exchange Act hereby establishes the Kentang Stock Exchange, where its call code shall be KSE. The KSE shall be the primary stock exchange within the Federation.
B) The Kentang Stock Exchange shall be headquartered within Victoria, Kentang at the current Stock Exchange building.
C) All companies, state-owned or private, are able to list on the KSE, provided they agree to the terms and conditions laid out by the KSE.
D) All listed companies must hold an annual general meeting at least once a year to share with investors about the progress and direction of the company, and for investors to question the management on issues within the company.
E) All listed companies are required to have a board of directors consisting of the top 5 largest shareholders in the company, and these directors will be responsible for overseeing the management of the company’s operations and to see that the company is operating in the shareholders’ interests.
F)All boards of directors are required to have at least 3 independent directors who will be paid to oversee operations to ensure that the interests of the minority shareholders will be served and not overshadowed by the interests of the biggest shareholders.