Friday 11th October 2019
Dear Reader,
It's time for restaurant and bar owners to come out and support the abolition of their corporate votes in the Catering sector, giving their workers the vote instead. An economic recovery is in everyone's interests. Be at the table, not on the menu.
NEW ARTICLE
A closer
look at Maxim's
Recent filings reveal the true profits of
Hongkong Caterers Ltd, the 50% owner of Maxim's run by the Wu family, and how
they take out a substantial management fee from Maxim's on top of the 50% of
profits. We also estimate that about 1 in 7 dollars of HK restaurant receipts go
to the Maxim's group. Annie Wu has only a 0.33% stake of HC, although her
parents and siblings control an estimated 18.6%. (11-Oct-2019)
RECENTLY ON WEBB-SITE
Carrie
Lam and the separation of powers
After trying to breach the
firewall between the 2 Systems with the Extradition Bill, she's at it again,
invoking the ERO to enact law by regulation. The PFCR, which she says is
subsidiary legislation, sets penalties higher than permitted by Ordinance.
Subsidiary legislation cannot override existing Ordinances, so she had better
not try. Meanwhile, basic maths and weekend events suggest the anti-mask law
fails the rational connection test and is unconstitutional. (8-Oct-2019)
Making
laws via the ERO may be unconstitutional
The
Basic Law establishes a clear separation of powers between executive and
legislative branches. A law that allows the Chief Executive to make laws appears
unconstitutional. We expect a judicial review if she tries it. Even if she
succeeds, draconian laws don't address the root problem: a deficit in democratic
accountability for both the CE and LegCo. We again propose local legislation to
scrap corporate voting and democratise the system. (4-Oct-2019)
IN OTHER NEWS
Webb in a Webinar: HK-Invocation of emergency powers
AIMA, 9-Oct-2019
A discussion on the HK
Government's use of the Emergency Regulations Ordinance, whether the ERO and the
anti-mask regulation made by it are constitutional, and the broader issue of
where HK may go from here. A form is required to listen but any answers will do.
Held at 17:30 on 9-Oct-2019.
'It's not about the money': What Beijing doesn't get about HK protesters
Los Angeles Times, 9-Oct-2019
HKICPA
fines Ernst & Young HK$350k and Andrew Wu Kwok Keung HK$100k
HKICPA, 9-Oct-2019
Over 14 years after
optical frame-maker Moulin collapsed in a heap of fraudulent accounts, the
auditor and its ex-managing partner, who retired in 2010, are fined for their
myopic see-no-evil approach to the work. We note that Mr Wu now chairs the audit
committee of SPT Energy (1251). Let's hope his vision has improved. Mr Wu's fine
takes into account his "personal circumstances", which presumably include pay of
RMB340k last year from SPT Energy. Moulin paid E&Y HK$10.8m for the 2 years in
question.
And much more besides...
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David M. Webb
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