March 5, 2014 Leave a comment
March 5, 2014 3 Comments
By CHAN Tsz Chun (Kelvin)
The public offering of the proposed spin-off of HK Electric Company Ltd (HEC), an electricity supplier in HK, by Hutchison’s Power Assets Holdings Ltd (PAH) was finally completed in late Jan 2014.
The “Stapled” structure in this listing is relatively new in Hong Kong.
- HEC becomes wholly owned by a new holding company, namely HK Electric Investments Ltd (HKEI). HEC itself simply operates like before.
- A Business Trust is established, namely HK Electric Investments, to invest 100% in HKEI. It is not a legal entity and its assets must be held by an appointed Trustee-Manager, which administers the Trust and legally owns the Trust’s asset (i.e. HKEI).
[The above screenshot is obtained from P.97 of the listing Prospectus in electronic version, which can be downloaded from the link shown in the second item of the Reference list below. The remark at the bottom-left corner in blue dotted box is added by me as supplementary reference.]
March 5, 2014 11 Comments
By Christie Yeung
National Spot Exchange Limited (NSEL), a company listed in India is suspected to have committed fraud and violated sections of the Companies Act in India. NSEL is a subsidiary of the Financial Technologies India Limited (FTIL), with FTIL’s promoter Jignesh Shah owning 99.9% of shares in NSEL.
March 5, 2014 14 Comments
By Tam Ka Chun
An annual general meeting (AGM) was once mandated by law before 1 July 2000, yet due to increasing criticisms regarding its necessity, all business can now dispense AGMs if certain requirements are met . These conditions for AGM dispensation are further widened under the new Companies Ordinance (CO) with effect from 3rd March 2014.
March 5, 2014 12 Comments
By So Ching Yu Calvin
At the annual meeting of Apple Inc. last week, Tim Cook, the CEO and member of the board of directors, told the shareholders to sell Apple’s shares if they expected Apple to lessen its growing reliance on green energy and the use of materials with smaller environmentally impacts in the production, which are believed to be worthless in reacting to the drop in profit for the first time in more than a decade in its latest fiscal year. Cook responded angrily to shareholders by saying that, “We do a lot of things for reasons besides profit motive. We want to leave the world better than we found it.”
March 5, 2014 11 Comments
By Poon Chun Hin (Angus)
With its aim to attract foreign direct investments in India, the Reserve Bank of India, through its circular no. 38 dated September 6, 2013, eased the regulation and restriction on non-resident investors in terms of acquiring shares on the floor of stock exchange.
The Circular states that through a registered broker, non-resident investors including non-resident Indian are now permitted to acquire shares of a listed Indian company (Ruchi Biyani, Sahil Shah and Nishchal Joshipura, 2013).
March 5, 2014 16 Comments
By Liang Yue
On March 3, 2014, Hong Kong new Companies Ordinance came into practice. There is one point in the ordinance which can protect minority shareholders’ benefits:
Headcount test is replaced by a new test for schemes of arrangement involving a general offer or a takeover offer. The new test requires that the votes cast against the scheme do not exceed 10% of the voting rights attached to all disinterested shares (Companies Ordinance, 2014).