2003 Research Report
Mission Impossible: Casting a Proxy Vote in Hong Kong
Major barriers exist that virtually prohibit many Hong Kong equity investors from exercising their right to attend and vote at shareholder meetings. The root of the problem lies in the failure of listed company registers to recognise beneficial owners as members of the company or, in other words, as shareholders.
When practiced effectively, proxy voting can be an additional line of defense protecting beneficial owners from controlling shareholder abuse. Reform of the proxy voting system in Hong Kong is needed urgently, if the equity market is to attain the global level of importance that regulators and the executive branch desire.