No-man's land, room for improvement
Dr. Maurice Ngai, CEO of SWCS mentioned that the current regulations only require companies to disclose price sensitive information in a timely manner and also require directors to ensure the company is compliant. However, listed companies can only be responsible for their group or subsidiaries. The major shareholders are the company’s investors, and the company is not obligated to disclose on behalf of major shareholders; the current listing rules also have no regulatory power over major shareholders.
He also pointed out that the disclosure of interest requirements is to be reported within 3 working days after the incident, which means the major shareholder is still compliant if they declared 3 days after liquidation. Which also means the major shareholders can use shares as collateral without disclosing, just like entering into a no-man’s land. He agreed that the system has room for improvement, such as aligning major shareholders with directors and including reporting responsibilities.
This article is available in Chinese only.