Forex broker CLSA Premium survives another vote on proposed winding up
Hong Kong-focused Forex broker CLSA Premium Ltd (HKG:6877) has survived another vote on its proposed winding up. At a meeting held earlier today, the majority of shareholders voted against a resolution for winding up the company.
The resolution, proposed by one of the shareholders, KVB Holdings Limited, stated:
“The Company be wound up by the Grand Court of the Cayman Islands and the available surplus assets on liquidation be distributed amongst the Company’s members in accordance with its articles of association and the Companies Law (2020 Revision).”
About 80% of the votes cast at today’s meeting were against this resolution.
Let’s recall that KVB Kunlun proposed the same 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.
CLSA’s Board has 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.
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.