Report on Improving Corporate Governance in Hong Kong

Оригинал на английском языке.
Гонконгский институт лицензированных публичных бухгалтеров
Hong Kong Institute of Certified Public Accountants
Авторы: Syren Johnstone и Say H Goo
Обзор текущего состояния (дата издания отчета 15.12.2017) корпоративного права Гонконга, основанного на Ординансе "О компаниях" 2014 года (Hong Kong Companies Ordinance) и Ординансе "О ценных бумагах и фьючерсах" 2003 года (Hong Kong Securities and Futures Ordinance). Исследование недостатков действующего режима и предложения о направлениях развития.

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Четверг, 30 мая 2019

4. Recommendations. 4.4 Shareholders

S 4.4.1 Shareholders as beneficiaries of listing rules

Step required
Establish a legal mechanism that gives shareholders locus standi.

Recommendation level
Support.

Topic addressed
Shareholders to have a personal right to seek an action for damages for loss suffered as a result of breaches of certain listing rules.

Details of recommendation
1.Amend the listing rules to express shareholders as third party beneficiaries of the contract between the issuer and the SEHK.
2.The SEHK could do this with the approval of the SFC, or the SFC could use its existing SFO powers to direct the exchange to do so.
3.The provisions over which shareholders have the right to take action to include all mandatory disclosure provisions of the listing rules.

Attendant considerations
The mechanism of assessing damages would need to be considered further - likely this will need to be referenced to the UK position where shareholders can sue for damages for disclosure breaches.
The position of issuers already listed on the SEHK would need to be addressed.

Jurisdiction references
United States.
UK.
Singapore.

Section 3 reference
3.6.2Listing rules
See also:
3.3.2Disclosure of listing rule compliance.

A4.4.2*Collective redress

Step required
Re-visit the Law Commission's 2012 proposal on the implementation of class action rights and to widen its approach to collective redress.

Recommendation level
Advocate.

Topic addressed
The ability in practice of shareholders to give effect to their legal rights.

Details of recommendation
1.Undertake a review of the original proposal with a view to identifying aspects of the proposal able to be adjusted to make this more acceptable in the Hong Kong context.
2.To widen the scope to reconsider implementing collective redress on a case management basis, i.e. group litigation as opposed to class action.
3.To consider removal of any contingency fee requirement associated with collective redress (since deep pocket institutional investors may still be prepared to commence an action that proportionally reduces the cost burden for smaller tag-along shareholders).

Attendant considerations
To identify the parameters of the review, its objectives and timeframe, and who should be undertaking the review.
The objectives of the review should be such that, if met, they are consistent with the political will to implement.
Implementing a case management based form of collective redress

Jurisdiction references
Hong Kong (LRC 2012 proposal). United States (class action rights). UK (group litigation order). Mainland China (joint litigation).

Section 3 reference
3.6.1.
See also:
3.7.2 Policy development agencies.

 

Содержание отчета

Executive summary
Executive Summary I Key Findings
Executive Summary II Summary of Recommendations
Executive Summary III Approach to the Study
Executive Summary IV Abridged Text of the Analysis

1 Introduction to the study and its purposes
Introduction
1.1 Purpose of this Report
1.2 The development of CG in Hong Kong
1.2.1 Domestic drivers
1.2.2 Global drivers
1.3 Structure of this Report
1.3 Structure of this Report
1.3.1 Methodology
1.3.2 Analysis
1.3.3 Recommendations
1.4 Scope and limitations of this Report
1.5 Next steps

2 Methodology
Introduction
2.1 Scope
2.1.1 CG concepts
2.1.2 CG Geographic reach
2.1.3 CG mechanisms
2.2 Work process
2.2.1 Data collection
2.2.2 Initial data organization
2.2.3 Oral evidence
2.2.4 Parity check
2.2.5 Analysis
2.2.6 recommendations

3 Discussion and analysis of jurisdictions studied
Introduction
3.1 Overarching considerations
3.1.1 Thematic topics
3.1.2 Trends in regulating CG standards
3.1.3 The role of culture
3.1.4 The methodology of assessment
3.1.5 Cost-benefit considerations
3.1.6 Maintaining competitiveness
3.1.7 Effectiveness
3.2 Non-locally incorporated companies
3.2.1 Application of local laws and regulations
3.2.2 Cross border enforcement and cooperation
3.3 Information
3.3.1 Legal status of CG disclosures
3.3.2 Disclosure of listing rule compliance
3.3.3 Board evaluation
3.3.4 Audit committee
3.4 Involvement
3.4.1 Shareholder stewardship
3.4.2 Shareholder votes
3.4.3 Remuneration
3.4.4 Changes of control
3.5 Equality
3.5.1 Voting rights generally
3.5.2 Weighted voting rights
3.6 Accountability
3.6.1 Information disclosures generally
3.6.2 Listing rules
3.6.3 Board refreshment
3.6.4 Appointment of independent directors
3.7 Effectiveness
Part A - CG system design
3.7.1 Impact of regulatory design
3.7.2 Policy development agencies
3.7.3 Enforcement agencies
3.7.4 Audits of public companies
3.7.5 Duties of directors
3.7.6 Role of fiduciary law
Part B - Specific actions
3.7.7 Differentiation of CG requirements
3.7.8 Listing regime standards upon entry
Part C - Independent directors
3.7.9 Determination of independence
3.7.10 Requirements relating to INED performance
3.7.12 Empowerment of INEDs - controlling shareholders
Part D - Other items
3.7.13 Whistle-blowing
3.8 Coda

4 Recommendations
Introduction and approach to the recommendations
Part A - The board
4.1 Processes
4.2 Independent directors
4.3 CG standards
Part B - Enforcement
4.4 Shareholders
4.5 CG disclosures
4.6 Regulators
4.7 Ex ante mechanisms
Part C - Architecture and policy
4.8 Architecture
4.9 Policy
4.10 Summary tables

5 Concluding remarks
5.1 The Recommendations
5.2 The Hong Kong market

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