COMPANIES listed in Hongkong are to be forced to appoint two independent directors to their boards, and professional advisers will face sanctions for failing to comply with local listing rules.
In the face of fierce opposition from merchant bankers and law professionals, the stock exchange listing committee has agreed in principle to the amendments which were contained in a consultation document issued late last year.
Sources said the proposed amendments were subject to final approval by the exchange policy-making council, and the Securities and Futures Commission would need to be consulted.
Implementation was expected to be undertaken in phases.
Stock exchange executive director Herbert Hui said yesterday that the listing committee had received submissions from market practitioners and listed companies in January.
He said the committee had discussed the issues at recent meetings and arrived at some decisions on the implementation of certain rules, but he would not give details of the rules, or a timetable for implementing them.