Small shareholders in Hong Kong are set to receive more assistance in litigating against companies engaged in corporate wrongdoing under a law set to be passed by the Legislative Council later this year.
Under a proposal contained in the Companies Amendment Bill, Hong Kong's courts will be able to award damages to minority shareholders whose investments have been unfairly prejudiced by the mismanagement of a company.
Although litigating against a large company is still likely to prove expensive for the smaller investor, the prospect of a payout at the end of a successful case may make things a little easier.
Companies Registrar Gordon Jones explained to the South China Morning Post last week that the aim of the legislation was to "make it as easy as possible for minority shareholders to take action".
It is expected that the Legislative Council will pass the Bill in the current session, which ends in July.
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