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Shareholders' rights and investor protection will face more scrutiny in Hong Kong following moves to give more power and status to a group representing investor interests. The Securities and Futures Commission has formalized its Shareholders Group as a statutory standing committee, giving it more say when advising the watchdog on policymaking and matters of concern relating to public and minority shareholders in listed companies.

The Central Bank of Colombia has replaced the previous External Regulatory Circulars (DCIN-36 of July 19 2001, DCIN-05 of January 10 2002, and DCIN-10 of February 15 2002) with a new External Regulatory Circular: DCIN-23 of May 9 2002. This will come into force on June 4 2002. The principal changes introduced by the new Circular are the following:

The Ontario Superior Court of Justice has released its judgment in a case involving the triggering provisions in change-of-control agreements between a company and its senior executives – commonly known as golden parachutes.

The US SEC has proposed rules to improve accountability of auditors of public companies through a Public Accountability Board. The Board would be outside the control of accounting professionals and is expected to supplement the watchdog's oversight and enforcement aims by employing 50 full-time staff. The Commission stated that the measures would "expand the opportunities to detect and remedy ethical lapses or deficiencies in competence".

As EU member states discussed the Prospectus Directive for the first time recently, deep divisions remained. Ecofin, the EU council of finance ministers, had preliminary discussions and set out a general strategy for reaching an agreement, but conceded that the permanent representations would have to compromise before an agreement could be thrashed out.

Allen & Overy, Clifford Chance and Linklaters have become the first foreign firms to win approval to open second offices in China. Although all three firms had already acquired second offices through European mergers, none of them had licences in their own names. In line with China's World Trade Organization (WTO) commitments, the Ministry of Justice had promised to relax its geographic restrictions on law firm offices. Before signing up to the WTO, China issued licences to foreign firms on a quota basis, good for five years in most cases. Even with a licence, firms could open only one office, forcing most into a decision between Shanghai and Beijing. Others, including Deacons and Stephenson Harwood & Lo, opened in Guangzhou, just across the border from Hong Kong, in Guangdong province.

By Ben Maiden, New York

New rules in China will encourage foreign investment in the manufacturing of 29 different types of electronic equipment. The prospects for technology companies are much improved, says Nancy Leigh of Baker & McKenzie

By Stephen Hoare

Hong Kong's securities and futures industry will soon be regulated by a single piece of legislation, designed to level the playing field between financial institutions. Simon Berry and Jill Wong of Allen & Overy report