Articles: Scripless securities
Stop the Scripless U-turn
Investors were in the dark for 4 years about plans to tear up a model that was first recommended by the Hay Davison Report in 1988, has worked in Australia since 1999, and was legislated in HK in 2015 but never actioned. Our extensive discussions with SFC and HKEX reveal no legitimate issues. We urge legislators to reject this U-turn and the SFC to proceed with the legislated model. The stench of vested interests is overpowering. (30-Apr-2019)
Investors were in the dark for 4 years about plans to tear up a model that was first recommended by the Hay Davison Report in 1988, has worked in Australia since 1999, and was legislated in HK in 2015 but never actioned. Our extensive discussions with SFC and HKEX reveal no legitimate issues. We urge legislators to reject this U-turn and the SFC to proceed with the legislated model. The stench of vested interests is overpowering. (30-Apr-2019)
Chi Dong Eun v L & A (8195) and others
HK Court of First Instance, 23-May-2017
The winding-up petition is struck out, as Mr Chi was not a registered shareholder for 6 of the 18 months before filing, as required by law. In a Feb-2017 hearing, Chi produced a share certificate in the name of Liu Longcheng, a plaintiff in another case against L&A. Judge Anthony Chan refers his judgment to the Director of Public Prosecution, as the evidence "invites the investigation…as to whether any of the common law offences of maintenance and champerty has been committed." We note that most investors in HK are not on the share register due to the central depository system, making the law on winding-up unavailable to them.
HK Court of First Instance, 23-May-2017
The winding-up petition is struck out, as Mr Chi was not a registered shareholder for 6 of the 18 months before filing, as required by law. In a Feb-2017 hearing, Chi produced a share certificate in the name of Liu Longcheng, a plaintiff in another case against L&A. Judge Anthony Chan refers his judgment to the Director of Public Prosecution, as the evidence "invites the investigation…as to whether any of the common law offences of maintenance and champerty has been committed." We note that most investors in HK are not on the share register due to the central depository system, making the law on winding-up unavailable to them.
Ordinance gazetted to facilitate paperless shares
| HK-listed domiciles
HK Government, 27-Mar-2015
Not yet in effect and, when it is, it will only apply to the 212 HK-listed companies (12%) which are incorporated in HK. Webb-site Who's Who shows the current leading domiciles are Cayman (817) and Bermuda (509), together accounting for 75% by number. They need to legislate too.
HK Government, 27-Mar-2015
Not yet in effect and, when it is, it will only apply to the 212 HK-listed companies (12%) which are incorporated in HK. Webb-site Who's Who shows the current leading domiciles are Cayman (817) and Bermuda (509), together accounting for 75% by number. They need to legislate too.
China Public Healthcare (8116): shareholders veto share consolidation
Company announcement, 8-Jun-2012
Told to consolidate by the Exchange, substantial shareholders vote it down. They can still change the board lot size without shareholders' approval. Currently 5,000 shares are only $375, which means that scrip fees charged by HKEx of $1.5 per board lot are 0.4% of the purchase price. Will HKEx, as Listing Regulator, require the company to change the board lot, or will HKEx, as a for-profit company, leave the board lot low to help fee income?
Company announcement, 8-Jun-2012
Told to consolidate by the Exchange, substantial shareholders vote it down. They can still change the board lot size without shareholders' approval. Currently 5,000 shares are only $375, which means that scrip fees charged by HKEx of $1.5 per board lot are 0.4% of the purchase price. Will HKEx, as Listing Regulator, require the company to change the board lot, or will HKEx, as a for-profit company, leave the board lot low to help fee income?
Strategy for implementing straight-through processing and scripless securities market
HK Government, 14-May-2003
HK Government, 14-May-2003
Report on Enhancement of Financial Infrastructure in HK
SFC, 12-Oct-1999
This is known as the "SCEFI 1" report, by the Steering Committee on Enhancement of Financial Infrastructure.
SFC, 12-Oct-1999
This is known as the "SCEFI 1" report, by the Steering Committee on Enhancement of Financial Infrastructure.
Financial Secretary Donald Tsang announces SCEFI (para 48 of budget) and exchanges merger (para 50)
HK Government, 3-Mar-1999
HK Government, 3-Mar-1999
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