October 22, 2014 Leave a comment
October 22, 2014 3 Comments
By Wun Ting Kwan
In late August, Hong Kong Exchanges and Clearing Limited (HKEx) published a concept paper on weighted voting rights (WVR), seeking opinions on whether companies with WVR structures should be permissible to list on stock market. It does not comply with current listing rules since it grants “certain persons voting power or other related rights disproportionate to their shareholding” (HKEx, 2014). It is debatable that the interest of minority shareholders can still be preserved with the introduction of WVR structures under the existing laws.
By Song Xin Ying, Vincy
On September 19th, China fined the UK pharmaceutical giant GlaxoSmithKline (GSK) $490m for founding it guilty of briery (BBC, 2014). This has been the biggest ever fine levied against commercial bribery in China. In fact, this is not the first time that foreign firms being accused of bribery. In 2013, JPMorgan Chase was investigated by U.S authorities for hiring children of Chinese officials in an effort to win business in China (Reuters, 2013). Also, the American cosmetics maker Avon had been involved in a probe which found it paying illegally to Chinese officials in 2011 (Phil Wahba, 2014). These scandals reveal the common contradiction that multinationals are facing now in China by choosing between corporate ethics and compliance to local bribery culture.
By Siu Ho Yan,
Tianhe, a Hong Kong listed chemicals producer, hires Deloitte as its auditor.
On the 13rd Oct 2014, Deloitte received an open letter from Anonymous Analytics, a group of anonymous analysts, telling that Tianhe was making false representations and providing falsified information to Deloitte.
Anonymous Analytics alleged a tax confirmation that Tianhe obtained from the government of Jinzhou city in northeast China was false because the numbers in that tax confirmation did not tally with corporate filings audited by Deloitte. Tianhe had cited this tax confirmation in its rebuttal of Anonymous Analytics’ fraud allegations on October 8.
By Li Sonia Margaret
Since the 21st century, social media and electronic technology has been establishing and evolving in a blooming trend. The perks of being an employee of high-tech companies such as Apple , Google, Facebook and more is publicly known, furthermore a lot agreed that being a “high-tech” member is everybody’s dream. However, is that so?
October 22, 2014 1 Comment
By Lam Ho Yan, Christy
The usage of piercing the corporate veil is shrouded in confusion. A recent case in the US, United States v. Trek Leather Inc. and Harish Shadadpuri (Trek Leather), has shown implications for veil piercing for executives’ liability.
Shadadpuri, the president and sole owner of Trek Leather, tried to undervalue garments being brought into the US by eliminating the cost of fabric assists, which in turn lowered the amount of duty payable to US Customs and Border Protection (CBP). The district court granted judgment against Shadadpuri, holding him personally liable. However, the Federal Circuit panel reversed. That decision was later vacated and the district court’s decision was reviewed en banc, that is, the case is heard before all the judges of the court (United States v. Trek Leather Inc. and Harish Shadadpuri, 2014).
By Fu Hoi Lun
After New York regulator fined Standard Chartered US$300 million in August for failing to flag high-risk transactions in the United Arab Emirates and Hong Kong, the bank said it would exit part of its small and medium-sized enterprises (SME) business in the UAE. So, thousads of customers’ accounts in the UAE had been notified that they would be closed in 30 days (Weinland , 2014).