New Century (HK234) – 23-August-2016

Home » New Century (HK234) – 23-August-2016

Disclaimer: These are excerpts from student assignments conducted as part of a Corporate Finance class. The opinions represented do not necessarily agree with mine. I do not vouch for the quality of the recommendations or the accuracy of the numbers. Follow the recommendations on your own risk.

My @LSEPKUSummerSch #CorpFin #students gave voting recommendations for the #AGM of #NewCentury $HK234

#students applaud current #directors for good performance but call for new director with expertise in third segment, trading #AGM of #NewCentury $HK234 #board

#students point out long tenure of current #directors and potential conflicts of interests at #NewCentury $HK234 #boardtenure

@LSEPKUSummerSch #students think #NewCentury current leverage low, #debt financing preferred to proposed share issuance #CorpFin #Leverage $HK234

@LSEPKUSummerSch #students believe demand for new shares limited since shares are extremely illiquid #NewCentury $HK234 #CorpFin #leverage #equity

Proposal Excerpt of Student Recommendations
For Against
(2)Director election
  • Evidence of effective leadership in good recent performance
  • Current directors own majority of firm, leading to possible conflicts of interests. One independent director is not enough
  • Even independent director has very long tenure, independence is questionable after such a long time. New directors recommended, especially with expertise in trading
(3) Director remuneration
  • Not enough information available to judge whether current remuneration structure aligns interests of management and shareholders
(5)Authorization of share issuance and repurchases
  • Management should have flexibility to react to market prices
  • The stock is very illiquid and potential demand for new shares limited
  • The current leverage is low, suggesting that debt financing may be better than issuing more equity

Results:

http://www.4-traders.com/news/New-Century-Hong-Kong-Announcements-and-Notices-Poll-Results-of-the-Annual-General-Meeting-Held–22941323/

 

Table from link:

 

Video:

Nicolas Millot