Hong Kong-focused Forex broker CLSA Premium Ltd (HKG:6877) has scheduled another meeting of shareholders in order to put to a vote a resolution about the company’s winding up.
The meeting is convened at the request of KVB Holdings, a CLSA shareholder, which has been repeatedly pushing for the closure of the broker.
An extraordinary general meeting of CLSA Premium Limited will be held at 17/F, One Pacific Place, 88 Queensway, Hong Kong on Friday, 25 March 2022 at 10:15 a.m. (Hong Kong time) (or, in the event that a black rainstorm warning signal or tropical cyclone warning signal no. 8 or above is in force in Hong Kong at 7:30 a.m. on that day, at the same time and place on Monday, 28 March 2022), to consider the proposed resolution.
KVB Holdings says that CLSA Premium has demonstrated an insufficient level of operations and is in a poor financial situation.
KVB refers to the imposition of additional licence conditions by the Financial Markets Authority of New Zealand on CLSA Premium New Zealand Limited (“CLSAP NZ”). This has led to the suspension of the operation of CLSAP NZ.
Furthermore, the company and its subsidiaries have disengaged 95% of their clients.
Finally, KVB notes the recent profit warnings issued by CLSA Premium. In January 2022, CLSA Premium said it expected to record a net loss approximately HK$57 million for the year ended 31 December 2021 (FY2021), as compared with the audited net loss of HK$72 million for the year ended 31 December 2020.
KVB requests that CLSA Premium be wound up by the Grand Court of the Cayman Islands and the available surplus assets on liquidation be distributed amongst the members of the company in accordance with its articles of association and the Companies Act (2022 Revision).
Let’s note that all proposals for the winding up of the business have thus far been rejected.