Board of CLSA Premium urges shareholders to vote against proposed winding up
The Board of Hong Kong-focused online trading company CLSA Premium Ltd (HKG:6877) has scheduled yet another meeting for voting on the proposed winding up of the business but has called for voting against the proposal.
In a filing with the HKEX, the Board says an EGM will be held at Suites 7501 & 7508, 75/F., International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong on Wednesday, 2 December 2020 at 10:15 a.m. (Hong Kong time) for the shareholders to consider and, if thought fit, to approve the special resolution in respect of the proposed winding up of the company.
As FX News Group has reported, earlier in October the Board received a Requisition Letter from a shareholder, KVB Holdings Limited, requesting an EGM for voting on the following proposal:
“That in view of the failure by the Company to comply with Rule 13.24 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited due to its insufficient level of operations and its poor financial situation, the Company be wound up by the Grand Court of the Cayman Islands and the available surplus assets on liquidation be distributed amongst the members of the Company in accordance with its articles of association and the Companies Law (2020 Revision)”
KVB Kunlun proposed the same Requisition Resolution in June and July 2020, however, the shareholders voted against it at the extraordinary general meetings held on July 28, 2020 and September 25, 2020.
Today, the Board once again urged the shareholders to vote against the proposal. The Board insists that the company has been actively carrying out a series of action to improve its business. The management of the company expects that the financial performance of the Group would gradually improve following the implementation of such business plan, and in turn it will create greater value and return to the Shareholders in the long term.
Let’s recall that, on September 18, 2020, CLSA Premium New Zealand Limited, a subsidiary of the Hong Kong brokerage, received a notice of decision from the Financial Markets Authority of New Zealand regarding the addition of specific conditions on its derivatives issuer licence. This move reflects CLSAP NZ’s failure to meet some of its audit and assurance obligations under the Act for year 2019.
The additional specific conditions prevent CLSAP NZ from making an offer to, or receiving further funds from, retail investors in relation to derivatives, except in certain limited circumstances. The conditions that the FMA has imposed allow CLSAP NZ to close out open positions with retail investors, or receive funds from retail investors for the purposes of meeting obligations (e.g. margin or collateral requirements) that the investor might have with CLSAP NZ.
These conditions took effect on September 22, 2020.