Lawmaker Asks SEC To Examine Chinese Solar Shell Cos.

Law360, New York (December 16, 2011, 5:53 PM EST) -- U.S. Sen. Bob Casey, D-Pa., on Thursday asked the U.S. Securities and Exchange Commission to investigate Chinese solar companies' use of shell corporations to access U.S. capital markets, arguing that the practice is putting investors and the domestic solar panel industry at risk.

In a letter to SEC Chairwoman Mary Schapiro, Casey said investors in those offshore holding companies have limited shareholder protections and no recourse against fraud. He also argued that the practice is further harming U.S. solar companies grappling with layoffs and plant closures...
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