The Securities and Futures Commission (“SFC”) of Hong Kong has issued a statement on 4 July 2019 in which the directors’ duties when considering corporate acquisitions or disposals have been further stressed. The Statement listed out several key types of misconduct and deficiencies of the directors commonly seen in transactions, in particular, lack of independent valuation, lack of due diligence on target entity’s financial position, inappropriate valuation procedures, etc.

As an experienced independent valuation and advisory firm, AVISTA has outlined several common queries that corporate might raise when aligning directors’ duties with the SFC’s updated requirements in corporate transactions.

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