When The Stock Exchange of Hong Kong Limited (HKSE) concluded the discussion surrounding Weighted Voting Rights (WVR) in April 2018, only individuals who have been materially responsible for the growth of the innovative company could benefit from WVR. HKSE has now published a consultation paper, which came out on 31 January, seeking to extend the regime to allow corporate WVR beneficiaries.
Given the controversy surrounding an “evergreen” WVR structure peculiar to corporate WVR, HKSE proposes more investor safeguards including a compulsory "sunset" provision so that the WVR will automatically lapse after a period of not more than 10 years. Below is a comparison between the existing limitations imposed on Individual WVR Beneficiaries and the proposal on Corporate WVR Beneficiaries.
You can view the Corporate WVR Consultation on the HKEX website. The consultation period ends on 1 May 2020.