The Government-controlled nomination procedure for the six elected directors at Hong Kong Exchanges and Clearing (HKEC) may not provide board members who represent exchange membership, according to brokers.
Brokers say the nomination procedure is faulty, because nine Government-appointed directors choose their nominees for the remaining six board posts.
'The Government has control of nine of the 15 seats on the board,' said Legislator Fung Chi-kin, who represents the financial sector.
'The nomination procedure for elected directors should not be monopolised by the Government.' The nomination procedure should be more transparent, said Hong Kong Stockbrokers' Association chairman Paul Fan Chor-ho.
But government officials said the procedure was not likely to be amended any time soon.
Financial Services' principal assistant secretary Bryan Chan Ping-keung said the procedure was designed according to the HKEC's initial shareholding structure.
