SOME companies are failing to notify shareholders of share repurchases, according to the Hong Kong stock exchange's listing committee. 'There were a handful of cases where the companies did not inform the shareholders,' Herbert Hui, head of the listing division, said. Listing Rule 10.06 states that prior to any share repurchase, a company must send shareholders an explanatory statement containing all relevant information. The division emphasised that failure to comply with the rule constituted a breach of the listing rules, which could lead to disciplinary action. By not informing shareholders, company directors also would breach individual declarations and undertakings made to the exchange.
