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Nov/Dec 21 Legal Update

Share This: Top stories HKEX consultation conclusions on corporate governance & directors’ guide   HKEX published consultation conclusions on enhancements to the Corporate Governance Code and Corporate Governance Report. (Press release; full document) Most proposals are adopted EXCEPT these notable modifications: (NOT adopted) independent shareholder approval of re-election of independent director (“INED”) serving more than 9 […]

Sep/Oct 21 Legal Update

Share This: Top stories HKEX consultation on revision of share schemes rules   On 29 Oct 2021, HKEX published a consultation paper on proposed amendments to Listing Rules relating to share schemes. The consultation period will close after 31 December. (Press release; full document) Firstly, it seeks to extend Chapter 17 of the rules to share award […]

August 21 Legal Update

Share This: Top stories HKEX Listing Newsletter: role of Directors   In its latest Listing Newsletter, HKEX addresses “the role of directors”.  It highlights 5 areas directors should keep in mind, in light of their responsibilities: (i) significant transactions, (ii) monitoring financial information, (iii) subsidiaries, (iv) understand the roles played by each director (v) good […]

July 21 Legal Update

Share This: Top stories New HKEX enforcement policy   HKEX published revised Enforcement Policy Statement and Enforcement Sanctions Statement, which have come into effect. In addition to the press release, HKEX’s latest Enforcement Bulletin also elaborates on the new statements. By way of background, the Enforcement Bulletin noted that there was a notable rise in […]

June 21 Legal Update

Share This: Top stories directors’ duties   Notable HKEX enforcement cases reflect recurring themes on directors’ duties, adequacy of internal controls in different context: disposals; financial assistance. (A) [Disposal] Listing decision on Alltronics Holdings Limited and named directors (executive, non-executive, independent) (Press release; Statement of Disciplinary Action) The company intended to dispose of a subsidiary […]

May 21 Legal Update

Share This: Top stories New HKEX disciplinary regime   HKEX published consultation conclusions in relation to proposed changes in its disciplinary regime. (Press release; full document: summary on P.2) The thresholds for some actions are lowered, and new measures are introduced. There is an emphasis on misconduct by individuals, including directors and (new) “senior management” […]

Apr 21 Legal Update

Share This: Top stories HKEX consultation on corporate governance revisions   On 16 April, 2021, HKEX published a consultation paper on proposed enhancements to the Corporate Governance Code and Corporate Governance Report. Some proposals relate to further strengthening the link between corporate governance and ESG. The consultation period will close after 18 June. (Press release; full document) […]

Feb/Mar 21 Legal Update

Share This: Top stories   SFC obtained disqualification orders (s. 214, Securities and Futures Ordinance) in the Court of First Instance against the former CEO and executive director of Long Success International (Holdings) Limited. They were disqualified from being a director or taking part in the management of any corporation in Hong Kong, without leave […]

Jan 21 Legal Update

Share This: Top stories HKEX review: annual reports disclosure HKEX published a report on its review of issuers’ annual reports for financial year ended between Jan to Dec 2019.  (Press release; full report) This covers: (i) rule compliance, corporate conduct, and disclosure of material developments; (ii) financial statements review. 13 areas were covered (full list: […]

Nov/Dec 20 Legal Update

Share This: Top stories (i) HKEX review: corporate governance disclosure HKEX published its latest review of issuers’ corporate governance reports for financial year ended between Jan to Dec 2019.  (Press release; full report) It focuses on (i) re-election of independent non-executive directors (“INEDs”) who served more than nine years, (ii) election of overboarding INEDs (i.e. holding […]