Asia Pacific: more scrutiny ahead

Author: Karry Lai | Published: 27 Mar 2018
Bad business practices in the spotlight

Hong Kong's Securities and Futures Commission (SFC) has launched a consultation on proposed amendments to the Codes on Takeovers and Mergers and Share Buybacks, with the ultimate aim of improving investor protection. Key proposals include:

an increase in the voting approval threshold for whitewash waivers to 75% rather than a simple majority of independent votes; empowering the Takeovers Panel to require compensation to be paid to shareholders who have suffered from a breach of the Codes' provisions; introducing measures to protect minority shareholders of companies incorporated in jurisdictions with no compulsory acquisition rights such as mainland China to be delisted in Hong Kong through a general offer; and new provisions which clarify the obligations of parties when dealing with the Takeovers Executive, the Takeovers Panel and the...