Thursday 27th March 2014

Dear Reader,

We're back after a two-month gap on the newsletter. But we haven't been completely idle. Apart from these occasional newsletters, you can follow our daily updates on HK events via RSS, Twitter, or Facebook, and the Webb-site Who's Who database and our archive are always at your disposal.

What the UK should learn from Jardines
Jardine group is downgrading its UK Listing, lowering minority rights and governance standards. The controller can vote, sealing the deal for 4 companies, but minorities of Hongkong Land could save themselves from this fate. Once downgraded, full listing cancellation requires no vote. We make recommendations to London's FCA based on HK's successful 2002 reforms to avoid a Hobson's Choice of a low buyout offer or holding delisted shares. (27-Mar-2014)

HKICPA disciplines Ms Yeung Ho Yin, partner, and Ernst & Young (HK)
HKICPA, 27-Mar-2014
The listed company involved is not named, but it is almost certainly First Credit Finance Group Ltd (8215).

HKSAR v Michael Yip Kim Po & Christie Yip Wan Fung (aka Yip Kim Fung)
HK Court of Final Appeal, 20-Mar-2014
The CFA dismisses the application for leave to appeal and criticises District Court judge Kevin Browne for the length of his 1753-paragraph Reasons for Verdict.

HK Govt statement on virtual commodities such as "the Bitcoin"
HK Government, 14-Mar-2014

HK tycoon Joseph Lau Luen Hung guilty in Macau graft trial.  Hall of Shame
RTHK, 14-Mar-2014
He is thereby inducted into our Hall of Shame. The case reminds us of the late Lim Por Yen, founder of Lai Sun group, who was convicted in Taiwan for corruption over a land transaction. As with Macau, there was and is no extradition treaty between HK and Taiwan. China is actually 1 country, 4 legal systems. After paying NT$40m in bail and being allowed to leave pending appeal, he never returned to Taiwan.

Moulin Global Eyecare v Inland Revenue
HK Court of Final Appeal, 13-Mar-2014
By a majority, the CFA rules that the Government gets to keep its windfall of tax paid on fake profits reported by Moulin. Lord Robert Walker, leading the judgment, attributes the actions of the fraudulent directors to the company, and says that the company "chose not to" object to the tax within the 1 month timeframe, even though it was still being run by fraudsters at that point (and they would of course not cause the company to correct the fake profits in the filings). Justice Robert Tang Ching is the lone voice of common sense. Webb-site now calls on the Government to table legislation to correct this anomaly.

Webb on "Backchat" re HK Budget
RTHK, 27-Feb-2014

And much more besides...
Remember that, apart from our occasional articles, you can follow our daily updates on HK events via RSS, Twitter, or Facebook.

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