End of Batch 10 Posts and Semester 2 Posts

Alibaba setting Hong Kong-style base fee as 1.1% for underwriters of U.S IPO

By Zhu Haipeng Harry

Background:

After the failure of IPO in the Hong Kong market, Alibaba is planning to reschedule the IPO plan in the U.S market. This time the China’s biggest e-commerce company still plans to use its Hong Kong standard, which is 1.1 percent of the total IPO proceeds as base fee together with another one third of comes in the form of incentive bonuses, as the underwriters’ fee. According to the estimated valuation of $20 billion Alibaba could raise in the sale, the pool fee can be potentially more than $220 million.

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Telkom CEO ordered to take course on corporate governance, is that enough?

By Zhang Siyao

Background

Sipho Maseko, the CEO of Telkom (a phone company 40% held by the South African government) was ordered by Company and Intellectual Property Commission to take corporate governance course, failure to do so might bring a criminal charge against him (Mokhema & Spillane). Maseko approved an interest-free R6m loan to the CFO to buy Telkom’s shares one day before it came to the closed period, resulting in an approximate gain of R1.65m (Spillane). CIPC said the loan was authorised prematurely and prior to the board passing the “necessary precursor financial assistance resolutions”. The loan was then fully repaid (Reuters), but Telkom claimed that CIPC had no authority to impose such sanctions (Mochiko).

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Could the Hong Kong Companies Ordinance completely tackle Shadow Companies?

By Wong Tsz Wing Angela

Introduction

 

In light of the increasing number of shadow companies registered in Hong Kong such as the cases of France L’Oreal Cosmetics Int’l Group (HK) Limited (Company No.1292493) and France Dunhill Int’l Limited (Company No.1229181), the Hong Kong Companies Ordinance sections have empowered the Registrar to tighten the control of shadow companies.

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Shanghai-Hong Kong Cross-Border Direct Trading – Are We Ready?

By Wong Tsz Lam

The “Through Train” Scheme

 

In April 10, 2014, the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission jointly announced the “Through Train” Scheme. This new scheme, expected to be formally launched by October, allows the individual investors in mainland and Hong Kong to cross-trade eligible shares listed on Shanghai Stock Exchange and Stock Exchange of Hong Kong.

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Is majority nomination right a possible alternative to dual-class share?

By So Yik Hei Harris

Background

The listing of Alibaba has engendered a lot of controversies about whether dual-class share should be allowed in Hong Kong (Orsagh, 2014). This triggered my desire to investigate if majority nomination right can satisfy the need of founders and protect the core value of Hong Kong, and thus serve as an alternative to dual class share.

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Unmask secretive company – UK plans public register of company owners

By Ng Yan Chak, Sam

Introduction

 

Vince Cable, the business secretary of UK government, announce that they will start to create a new public register of company ownership and ban bearer shares on this Monday, in order to bring transparency to complex company structures.

 

In the new policy, shareholders owning more than 25 percent share in a UK-registered company need to declare personal details such as their name and nationality and the information need to be updated every year.

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