hong-kongs-takeover-laws-in-question

Hong Kong's takeover laws in question

Roger Denny, Clifford Chance's head of M&A, believes it's time to change the company law on scheme takeovers in Hong Kong. FinanceAsia asks why.

Why do you think it's time to change the company law on scheme takeovers in Hong Kong

Under the Hong Kong Takeovers Code, independent shareholders -- those unconnected with the offeror -- holding 75% of the shares represented at the meeting must vote in favour and the number of independent shares voted against must not exceed 10% of all independent shares. Hong Kong company law adds another test -- that the scheme must also be approved by a majority in number of those people voting.

Seems fair enough. What's the problem

The first test sets a fairly common threshold for a decision requiring a meaningful majority....

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