Six percent annual turnover for non-compliance seems too low.
Should be six percent for first offense, 12% for second, 25% for third, etc.
Until the company fixes it's compliance or becomes insolvent.
Should be six percent for first offense, 12% for second, 25% for third, etc.
Until the company fixes it's compliance or becomes insolvent.
I think 6% is quite a lot, even if one has 40% margin. Investors will be highly distraught and seek remedies from the current management. But for instance at 20% they will blame the regulators and push the company to fight in courts.
In any way, government wants to motivate change in behavior not taking companies out of business.
Taking maliciously noncompliant comanies out of business can be a way to motivate others to not try to skirt the law.