Hong Kong Stock Exchange Listing Committee Mulls Corporate Governance Reforms
Hong Kong's stock exchange listing committee has decided to increase the minimum
number of non-executive directors required by listed firms from two to three,
in order to ensure that the voices of small shareholders are heard on company
boards, it emerged this week. Speaking to the South China Morning Post at the mid-point of the committee's
two day quarterly meeting, an unnamed source close to the committee revealed
that in addition to requiring companies to obtain the approval of independent
shareholders for deals with major shareholders, the 25-member group also made
the rules on connected transactions more strict. However, the source explained that the committee had failed to reach agreement
on a proposal making it compulsory for companies to reveal the renumeration
afforded to their directors. 'It's a controversial topic and we can't make a quick decision,' he explained,
continuing: 'Supporters consider that disclosing a director's pay by name would
help increase transparency but opponents say it would invade privacy and lead
to highly paid directors becoming kidnap targets.' .
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