Share This: Top stories HKEX case on directors’ duties HKEX imposes a “Prejudice to Investors’ Interests” statement (“PII Statement”) against the former chairman and an independent director (“INED”) of National Investments Fund limited, censures its named executive directors and INEDs, and directs some directors to attend training on Listing Rules compliance. (Announcement; Statement of Disciplinary […]
Share This: Top stories HKEX Enforcement Bulletin: internal controls guidance HKEX published its latest Enforcement Bulletin, with internal controls as its theme. First of all, the board is responsible for appropriate and effective internal controls, with directors having collective and individual responsibilities. This is despite the fact that the audit and risk committees may […]
Share This: Top stories HKEX review: annual reports disclosure HKEX published a report on its review of issuers’ annual reports for 2020 year-end. (Announcement; full report) Scope: (i) thematic review of selected areas/ disclosure, (ii) thematic review of selected issuers (this issue: newly-listed; biotech companies); (iii) financial statements review; (iv) rule compliance. A high level […]
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 […]
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 […]
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 […]
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 […]
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 […]
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” […]
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) […]
