Share This: Top stories New SFC cases on director duties in acquisitions/disposals Two new cases illustrated “recurring types of misconduct” referred in SFC’s recent Statement on the Conduct and Duties of Directors when Considering Corporate Acquisitions or Disposals. (Background: our July 19 legal update) (i) SFC obtained disqualification orders (s. 214, Securities and Futures […]
Share This: Top stories Two notable enforcement cases (i) HKEX criticizes Yashili International Holdings Limited for repeated breaches of the Listing Rules, and raised concerns on internal controls. (Click: Press release). The case relates to delay in announcing 7 “connected transactions” (“CTs”) during Jan-Aug 2017. The issuer previously received two “caution letters” (in 2014, […]
Share This: Top stories HKEX published its Enforcement Newsletter, covering 1H 2019. The regulator’s Head of Enforcement, Listing Department outlined its current enforcement focus, and way forward. There was an increase in cases with compliance breaches caused by internal controls deficiencies. HKEX will also “sharpen up its focus on individual conduct” for Listing Rules […]
Share This: Top stories SFC Statement on director duties in acquisitions/disposals SFC published a Statement on the Conduct and Duties of Directors when Considering Corporate Acquisitions or Disposals. Broadly, this statement is a follow-up on SFC’s Guidance Note on directors’ duties in the context of valuations in corporate transactions (for details: our May 17 […]
Share This: Top stories The Market Misconduct Tribunal found that Health and Happiness (H&H) International Holdings Ltd and its chairman & executive director had failed to make timely disclosure of inside information, and fined them $1.6 million each. (Click: press release) Both defendants admitted to a four-week delay in the company’s disclosure of its financial […]
Share This: Top stories HKEX published consultation on “Review of ESG Reporting Guide and related Listing Rules”. It also updated ESG guidance materials, clarifying how different aspects of ESG relate to the Corporate Governance Code (“CG Code”). (Click: press release; updated FAQ Series 17 and 18; e-training) For IPOs, enhanced disclosure on gender diversity is […]
Share This: Top stories (i) Privacy Commissioner compliance check: shopping mall memberships + online promotions (Click: full report; press release) In 2018, the Commissioner visited 100 shopping malls (including at least 2 malls from each of HK’s 18 districts), and reviewed 300 webpages requesting personal data in exchange for benefits. Such online promotion activities are […]
Share This: Top stories The Privacy Commissioner highlighted improvement areas in its “2018 Study Report on Implementation of Privacy Management Programme by Data Users”. (Click: full report; press release) The Commissioner examined 26 organizations from different sectors (including insurance, finance, telecommunications, public utilities and transportation) to understand their implementation of “Privacy Management Programme” (Background on […]
Share This: Top stories Latest SFC Regulatory Bulletin: “front-loaded” approach (Click: press release; full report) Useful cases illustrate how the SFC intervenes at an early stage (“front-loaded” approach), where it has serious concerns about IPO applications or post-IPO corporate transactions. We focus on the post-IPO cases. SFC is devoting more resources to transactions which […]
Share This: Top stories HKEX review: annual reports disclosure HKEX published a report on its review of issuers’ annual reports for year 2017. This is the first “consolidated” review, combining previously separate programmes: (i) review of disclosure in annual reports to monitor rule compliance; (ii) financial statements review. It reviewed eight areas — two […]
