Recent SFC actions highlight increased regulatory focus on directors in Hong Kong, including INEDs

The Securities and Futures Commission (SFC) in Hong Kong has recently sought disqualification orders against listed company directors in a number of court actions commenced in the past few months.  The proceedings against the directors have been brought under section 214 of the Securities and Futures Ordinance.  If successful, the court has the power to disqualify the relevant directors from being directors or from being involved, directly or indirectly, in the management of any corporation for up to 15 years. The SFC is also seeking compensation orders from certain directors in some cases.

There have also been a number of regulatory developments emphasising the role of boards of directors and senior management.  These, together with the recent enforcement actions, highlight the increased focus on directors.  In light of this, all directors, including non-executive directors, must ensure that they fully understand the regulatory framework and are able to properly discharge their responsibilities.

Our bulletin discussing the above issues can be found here.  If you wish to discuss these issues further, please do not hesitate to contact William Hallatt, Tommy Tong, Matt Emsley, Jason Sung, Austin Sweeney, Hannah Cassidy, or your usual Herbert Smith Freehills contact.

William Hallatt
William Hallatt
Partner, Financial Services Regulatory
Email | Profile
+852 2101 4036
Tommy Tong
Tommy Tong
Partner, Corporate
Email | Profile
+852 2101 4151
Matt Emsley
Matt Emsley
Partner, Head of Corporate, Greater China
Email | Profile
+852 2101 4101
Jason Sung
Jason Sung
Partner, Corporate
Email | Profile
+852 2101 4607
Austin Sweeney
Austin Sweeney
Partner, Head of Corporate, Asia
Email | Profile
+852 2101 4001
Hannah Cassidy
Hannah Cassidy
Registered foreign lawyer (England and Wales), Hong Kong
Email
+852 2101 4133

 

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