Thursday 22nd April 2010
Dear Reader,
NEW ARTICLES
The Post Office Investment Fund
Following yesterday's Audit
Commission report on Hongkong Post, we look at the potential closure of rural
post offices, removal of its mail monopoly and universal service obligation, and
its cash-rich balance sheet and prime property. We also discuss the Government's
tendency to stash pots of money away in different bodies rather than pass
recurrent spending through the budget and the Legislative Council and manage its
liquid funds centrally.
Shareholders
veto HKEx resolution
Following our recommendation, Webb-site.com is
pleased to note that investors have sent a clear message, voting by 70.2%
against a proposal to allow the company to bypass board meetings and pass
resolutions with a simple majority of signatures. We now call on HKEx to make
this right by amending the Listing Rules to prohibit such articles, which would
weaken corporate governance.
RECENT ARTICLES
Imagi rights v shares gap
With Imagi's stock down 67.4% in 3 days
since our bubble warning, the rights began trading this morning, at a huge
discount to the share price, raising obvious questions of whether the market in
either counter is false. If you own the shares and believe in the current
valuation (which we don't) then why aren't you selling your shares and buying
the rights to get free cash? (21-Apr-10)
Multiple
statutory derivative actions
David Webb responds to the Legislative
Council's invitation for comments on proposed amendments to the statutory
derivative actions regime. In its current form it is unlikely to be useful to
public shareowners of listed companies, but we suggest how to improve it. We
also call on the Administration and Legislators to get behind class actions,
litigation finance and contingent legal fees. Justice is the friend of fair
societies, and litigation is the path to it. (18-Apr-10)
Pass it on!
This free newsletter goes to over 19,000 practitioners, issuers,
regulators and investors in Hong Kong's markets. If you enjoy it, then please
invite a friend to find out
what they are missing and subscribe!
Visit our archives, and do your homework before you invest.
Copyright notice