CLSA Premium survives another vote for its proposed winding up
Retail Forex broker CLSA Premium Ltd (HKG:6877) has survived another vote on its proposed winding up.
At an extraordinary general meeting (EGM) held today, the proposed resolution for winding up the company was not passed. Only 20% of the votes were cast in support of the resolution, whereas 80% were against the proposal.
The meeting was convened at the request of KVB Holdings, a CLSA shareholder, which has been repeatedly pushing for the closure of the broker. KVB Holdings says that CLSA Premium has demonstrated an insufficient level of operations and is in a poor financial situation.
KVB refers to the imposition of additional licence conditions by the Financial Markets Authority of New Zealand on CLSA Premium New Zealand Limited (“CLSAP NZ”). This has led to the suspension of the operation of CLSAP NZ.
Furthermore, the company and its subsidiaries have disengaged 95% of their clients.
Finally, KVB notes the recent profit warnings issued by CLSA Premium.