Hong Kong Shareholder Advocate Elected To HKEx Board

by Philip Morton, Investors Offshore.com

18 April 2003

Controversial shareholder rights advocate, David Webb has been elected to the board of Hong Kong Exchanges and Clearing (HKEx), it emerged last week.

The appointment of the former investment banker to the HKEx board, which has traditionally been dominated by brokerage owners, marks a sea change in the way that the exchange is run, according to observers.

Speaking following his appointment, Mr Webb told the Hong Kong Standard that: 'Clearly there is support from investors for a more representative board that better reflects the interests of shareholders and investors.'

He went on to add that the fact that he was elected to the position without the recommendation of the HKEx board should send a message that: 'shareholders have had enough of the way HKEx has been run by vested interests, including the brokers who have held all the elected seats since the company was listed'.

Webb has actively campaigned for the transfer of the exchange's listing function to the jurisdiction's Securities and Futures Commission, a stance which has put him in direct opposition to HKEx chairman, Charles Lee.

However, according to reports, he sees no conflict between his standpoint on this issue and his new role. Indeed, according to the Hong Kong Standard, the shareholder advocate shows no signs of slowing down now that he is part of the establishment.

'Having access to internal documents puts you in a much better position,' he told the newspaper.

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