The Securities and Futures Commission (SFC) has frequently emphasized its commitment to combatting corporate fraud and misconduct in recent years. Continuing with these efforts, in July 2019, the SFC issued a Statement on the Conduct and Duties of Directors when Considering Corporate Acquisition or Disposals ("Statement"). The Statement outlines recurring types of misconduct in relation to corporate acquisitions and disposals that have given rise to concerns and, in some cases, led to intervention by the SFC.
Our alert discusses recent enforcement trends and the repercussions of failing to comply with the SFC's requirements. We also set out practical steps that listed companies and management can take to mitigate their risks.
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