Small Shareholders Protected

Small shareholders are protected under the newly introduced weighted voting rights structure, Secretary for Financial Services & the Treasury James Lau said.

Speaking to the media after attending a radio programme today, Mr Lau said shareholders with weighted voting rights are under certain prescribed circumstances.

“They will have the same voting power when it comes to voting on the appointment of non-executive directors or on changes to the articles of association and so forth.”

He said the Corporate Governance Committee, to be comprised of independent non-executive directors, will keep a watchful eye on the overall governance of a corporation.

“If there were any cases whereby let’s say, the board is acting against the interests of the corporation in general or the retail investors, the Corporate Governance Committee, they can actually make recommendations and the board will have to act upon the recommendations.

“If they do not comply, they will need to explain why they are not complying.”