HONG KONG, Jan 24 (Reuters) - Hong Kong Exchanges and Clearing Ltd (HKEx) and the Securities and Futures Commission (SFC) will discuss a paper on new shareholding structures for publicly traded companies in the first quarter before putting it up for public consultation, a top exchange official said on Friday.
The paper will touch on a broad range of topics, not just “weighted voting rights,” David Graham, chief regulatory officer and head of listing at HKEx, told Reuters.
The move comes after Hong Kong regulators last year rejected Internet giant Alibaba Group Holding Ltd’s planned IPO after the company requested to keep a shareholder structure that allowed a group of top managers and founders to nominate and control the board, while holding only around 13 percent of the company shares.
That request went against the exchange’s one-share-one-vote principle..
“We’ve worked on a paper and we’re discussing that paper with the listing committee and the SFC. We will be working on it during the first quarter,” Graham said on the sidelines of a regulatory forum organised by the SFC.
Reporting by Elzio Barreto; Editing by Denny Thomas