BANK OF EAST ASIA, LIMITED (THE) 東亞銀行有限公司

This practice went on for 13 years before an inspection by the HK Monetary Authority picked it up! By the way, the HK custodian is "Hong Kong Securities Clearing Company Limited", not CCASS, which it operates.

The discovery battle continues.

The court allows expert witnesses on the practice of equity capital markets and equity valuation and analysis.

The court dismisses the challenge of the Official Receiver to the appointment of Alan Tang Chung Wah, of SHINEWING Specialst Advisory Services, as trustee of the bankrupt person, John Chan Loong Fai. The court rules that if the OR has a problem with a liquidator then they should be referred to the relevant disciplinary body.

The company is limited by guarantee with 7 members. All the 7 directors are associated either with Henderson Land (0012) or Bank of East Asia (0023), which is also its banker and manager of HK$484m of securities. The audit report is qualified because the firm fails to revalue its investment properties, which are held at $1. It owns the Tai Hang Sai Estate in Shek Kip Mei, and in today's policy address, that is up for redevelopment. The land was granted in 1961 at a concessionary premium and the 1600+ flats are leased at below-market rates.

Justice Jonathan Harris grants Elliott permission to publish the Points of Defence and the Points of Reply, in the interests of open justice. The broader question, in our view, is why, in the 21st century, are written submissions and other documents for open hearings not filed electronically and made available for free via the judiciary web site?

10 months after a hearing, Jonathan Harris orders discovery on both sides, including "documents recording Elliott’s strategy at the time of its investment".

Nearly 11 months after his decision, Jonathan Harris gives reasons for dismissing BEA's strike-out petition. Elliott claims that the share placements to SMBC and Caixa and voting undertakings were for an improper purpose, to entrench control of BEA by David Li and his family. BEA claims that Elliott has a collateral purpose, to facilitate a takeover of BEA. Our view: when shareholders seek to remedy an alleged wrong done by the board of their company, the benefits that flow from that are irrelevant. In corporate governance, boards are accountable to shareholders, not the reverse.

She failed to disclose a Taiwan criminal conviction to the SFC and to Bank of East Asia when applying for a new job. She was convicted on 10-Aug-2010 but carried on working for CITIC Securities in HK until 1-Jun-2012, then BEA until 8-Sep-2014.

Damning stuff - the proposed subscription by SMBC was dealt with by a memorandum from the Chairman/CEO David Li on 1-Sep-2004, with "the signing of the memorandum, without discussion, by all directors indicating their approval". No board meeting until 14-Jan-2015. "Goldman Sachs were only engaged after Elliott began to object to the Proposed Subscription...I do not think it takes an especially skeptical turn of mind to suspect that the Board wanted to justify its earlier decision if at all possible" - Justice Jonathan Harris.

So did David Li Kwok Po in 2008 after he settled the Dow Jones insider dealing charges with the US SEC with a US$8.1m civil penalty.

David Li Kwok-po, who has been "independent" non-exec director of COLI for nearly 21 years since its IPO, is succeeded by his son, Brian David Li Man-bun. Their Bank of East Asia has been a banker to COLI since the IPO too, so the business relationship makes them non-independent in our view.

<i>Webb-site.com</i> editor David Webb has written to Hong Kong's Chief Executive with the results of our opinion poll on whether David Li Kwok Po should leave the Executive Council.

Early today HK time, avoiding local press coverage, the US SEC announced David Li's HK$63.2m settlement of charges of insider tipping in the Dow Jones case. We call on him to do the honourable thing and resign as a member of Hong Kong's cabinet and legislature.

The tide is turning in Hong Kong's battle for pre-emptive rights. In a close shareholder vote, the board of HKEx almost lost its general mandate to issue new shares, by asking for a 20% cash mandate, against the recommendations of Project Vampire. And this is the company whose subsidiary makes the Listing Rules which allow such mandates in the first place. Things weren't much better over at Bank of East Asia, either.

The first AGM of the year in Project Poll is on 31-Mar-04, beating HKEx by a few hours. We produce our voting recommendations, including a vote against the re-election of a not-so-independent INED and against the general mandate.

The first AGM in Project Poll is on 25-Mar-03, and we produce our voting recommendations, including a vote against the re-election of Lee Shau-kee and against the general mandate.