Articles: Independent Non-Executive Directors
Women and the size of HK boards
Webb-site has completed a database on HK-listed boards since 1990. We begin a series of analyses on board composition, starting with the number and proportion of women on boards, and the size of boards in response to changing rules on the number and proportion of "independent" directors. (13-Sep-2013)
Rusal (0486): Barry Cheung Chun Yuen resigns as INED
Company announcement, 27-May-2013
"to focus on personal business matters". Amazingly, the Stock Exchange has started waiving its new rule on requiring one-third of the board to be "independent". Rusal was at 5/18 before Cheung resigned, and 27.8% is "very close" to one-third, they say. Presumably 3/10 (30%) or 3/11 (27.3%) is also OK? This effectively reduces the minimum to one quarter (25%).
The three wise monkeys of HK boards
SEHK has proposed minor reforms to the composition of boards which completely miss the core issue - INEDs are only as independent and competent as the controlling shareholder wants them to be, as long as he or it votes on the INED elections. We call for independent directors to be independently-elected. Tell us what you think!
. Read our article and then take our poll on INEDs. (15-Feb-2011)
Building a Value Proposition for HK
HK Chief Executive Donald Tsang recently convened an Economic Summit of 33 people, which spawned 4 focus groups, including one on financial services, which in turn produced 3 working groups, one of which, headed by HKEx government-appointed director and Chairman Ronald Arculli, has sought submissions on the markets. This is our submission. (4-Oct-2006)
Listing Rules Review Part 2: Board Games
In Part 2 of our review of the proposed Listing Rule changes, we look at the fundamental question of independent directors and committees. Here again, the SEHK wins a perfect 6.0 in the "form over substance" category. They are skating on thin ice by allowing controlling shareholders to elect " independent" directors, a system which has failed to prevent numerous horror stories on Webb-site.com. Independent directors should be elected by independent shareholders. (21-Feb-2002)
Hong Kong's not so Independent Directors
How Hong Kong's controlling shareholders appoint the Independent Directors who are supposed to prevent them from abusing the company, and what to do about it. (20-Apr-1999)