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  • HC-1.6 Representation of all Shareholders

    • HC-1.6.1

      Each director must consider himself as representing all shareholders and must act accordingly. The Board must avoid having representatives of specific groups or interests within its membership and must not allow itself to become a battleground of vested interests. If the company has a controller (or a group of controllers acting in concert), the latter must recognise its or their specific responsibility to the other shareholders, which is direct and is separate from that of the Board of directors.

      January 2011

    • HC-1.6.2

      In investment firm licensees with a controller, at least one-third of the Board must be independent directors. Minority shareholders must generally look to independent directors' diligent regard for their interests, in preference to seeking specific representation on the Board.

      January 2011

    • HC-1.6.3

      In investment firm licensees with a controller, both controllers and other shareholders should be aware of controllers' specific responsibilities regarding their duty of loyalty to the investment firm licensee and conflicts of interest (see Chapter HC-2) and also of rights that minority shareholders may have to elect specific directors under the Company Law or if the investment firm licensee has adopted cumulative voting for directors. The chairman of the board or other individual delegated by the chairman of the board should take the lead in explaining this with the help of company lawyers.

      Amended: January 2012
      January 2011

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