Unlucky Shareholders

While investors are still trying to make sense of the unauthorized forex deals made under spurious circumstances that forced the company to make record provisions, to the tune of HK$15.5 billion, questions have arisen about how much the company chairman’s daughter knew in her position (or former position) as director, group finance. Putting aside the extent of her alleged involvement, the mere claim that high-risk, high-volume foreign exchange transactions were being carried out without the knowledge and authorization of top management is simply mind-boggling. Minority shareholders have every right to question the company board members’ integrity and on whether they have properly carried out their fiduciary duty, although, given Hong Kong’s lax and non-binding corporate governance rules (such as “

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