Government rejects Hams proposal
The Government has rejected independent commentator David Webb's proposal to establish a Hong Kong Association of Minority Shareholders (Hams).
Deputy Secretary for Financial Services Susie Ho Shuk-yee had said the Government was 'not in a position to take the Hams proposal forward, in its present form', Mr Webb reported on his financial commentary site, Webb-site, yesterday.
'It is unlikely the Hams proposal will form part of SCCLR's [Standing Committee on Company Law Reform] recommendations in its forthcoming consultation paper as part of the corporate governance review,' Ms Ho was quoted as saying.
Mr Webb proposed the establishment of a statutory body that would employ a team of lawyers to select and pursue targets for litigation, fighting for the rights of small investors and creating a deterrent to bad governance.
He drew the support of 73 organisations, including international asset management firms such as AXA Investment Managers and brokerages such as CLSA Emerging Markets.
'The news comes despite widespread endorsement from market participants,' said Mr Webb, describing the Government's decision as 'a dark day for [Hong Kong] corporate governance reforms'.
The Government has made improving corporate governance a priority, with Chief Secretary Donald Tsang Yam-kuen saying he wants Hong Kong to become a benchmark for the region.
Funding was a key reason behind the rejection of the Hams proposal, according to a Government source.
Mr Webb had proposed the body be funded by a 0.005 per cent levy on each side of a share transaction.
