Analysis Numerous independent directors of companies listed on the Shanghai and Shenzhen stock exchanges have resigned after the conclusion of the Kangmei Pharmaceutical trial, which found the health care company guilty of fabricating its financial statements. The court also ruled that Kangmei’s executives and board members are also liable and must compensate investors. The verdicts of the first trial against Kangmei Pharmaceutical Co. Ltd., a billion-dollar financial fraud case in China’s A-share market, were announced Nov. 12. The Guangzhou Intermediate Court ordered Kangmei Pharmaceutical to pay more than 50,000 investors $384 million in compensation for their investment losses. Nineteen directors, supervisors, and senior executives were found to be jointly liable for organizing and carrying out financial fraud and falsely disclosing information. Ma Xingtian, former chairman of Kangmei Pharmaceutical, was sentenced on Nov. 17 to 12 years in prison and fined for a range of crimes, including stock market manipulation, illegal …