Hong Kong-focused online trading company CLSA Premium Ltd (HKG:6877) is facing yet another vote on its proposed winding up. This becomes clear from a filing with the HKEX.

CLSA Premium’s Board confirms that, on 5 October 2020, the company received a letter from the a shareholder, KVB Holdings Limited, requesting that CLSA Premium convenes an extraordinary general meeting (EGM). The purpose of the meeting is to put to vote a special resolution for the proposed winding up of the brokerage.

This is the third time that the same Requisition Resolution would be put to vote. The Requisition Resolution was not passed at the EGMs held on July 28, 2020 and on September 25, 2020.

Based on the Company’s register of members, the Requisitionist is the registered holder of 300,000,000 Shares (representing approximately 14.75% of the Company’s issued share capital) as at October 5, 2020. Passing of the special resolution requires a majority of not less than 75% of votes cast by the members of the company at a general meeting.

The Board explains that, upon obtaining necessary advice in relation to the requisition, it would act in accordance with the provisions of the Articles and applicable laws, rules and regulations.

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.