On 16 August 2024, The Stock Exchange of Hong Kong Limited (the “Exchange”) released a consultation paper to seek market feedback on proposals that would further expand the paperless listing regime. The aim of the current proposal is to expand the use of electronic channels to further enhance operational efficiencies and sustainability, and to improve communication between issuers, investors and other participants. The consultation concluded on 18 October 2024.
One of the proposed changes is to require listed issuers to ensure that their constitutional documents would enable them to hold hybrid general meetings and allow E-voting, to the extent permitted by the laws and regulations applicable to them (the “Proposed Change”). In light of the Proposed Change, listed issuers may need to: (a) remove any provision in their constitutional documents that has the effect of preventing the holding of hybrid general meetings and the use of E-voting; and/or (b) include express provisions that enable hybrid general meetings and E-voting in their constitutional documents. In the meantime, listed issuers must put in place measures to ensure that the securities holders’ rights to speak and vote will be maintained if they choose to hold hybrid general meetings.
If the proposal is adopted, the implementation of the Proposed Change is expected to take place shortly after the consultation conclusions are finalised and published. It is expected that listed issuers that have not already amended their constitutional documents shall have the opportunity to do so at their next annual general meeting following the publication of the consultation conclusions. We recommend that the existing listed issuers and new listing applicants should review their constitutional documents and if necessary, consult their legal advisers to determine any necessary amendments to their constitutional documents in relation to holding hybrid general meetings and allowing E-voting.
