Hong Kong Exchanges director Webb quits board

HONG KONG, May 16 (Reuters) - Shareholder activist David Webb has resigned from the board of Hong Kong Exchanges and Clearing Ltd (0388.HK: Quote, Profile, Research, Stock Buzz), Asia's largest listed bourse, after a disagreement with management.

Webb had resigned from his post as an independent non-executive director effective May 15, the Hong Kong bourse said in a statement late on Thursday.

Webb, in a statement included in the company's release, said he had decided to leave after the management refused to provide information he had requested and criticised the company's actions.

"This is not conducive to good governance and informed decision-making, and carries an implicit insult to the integrity of the board," Hong Kong bourse quoted Webb as saying in his letter of resignation.

Webb, who served on the board for five years, said the policy of the Hong Kong bourse "is increasingly being driven through the backdoor by inexperienced and inexpert officials rather than by an independent board in the best interests of the market".

He added it would be better for him to contribute independently and through other roles.

Hong Kong Exchanges said it did not agree with Webb's criticisms and it was committed to following the listing rules to provide timely information as required.

Webb also said that during his tenure, there were several U-turns led by government-appointed directors on what were clearly political grounds.

His decision comes just days after the bourse reported a 79 percent surge in quarterly earnings, riding a near doubling in turnover as China's booming economy sustained investor enthusiasm despite a sharp drop in new listings. [ID:nHKG224170]

For details of the resignation, please see here (US$1=HK$7.8) (Reporting by Donny Kwok; Editing by Anne Marie Roantree)