80% Shareholders Votes Against FX Broker CLSA Premium’s Wind-up Resolution

The third business wind-up attempt of Hong Kong headquartered FX broker CLSA Premium Limited failed again as 80% of its shareholders voted against the resolution. At least 75% of the shareholders needed to vote in favor to pass the resolution to close the company.

In the last couple of years, KVB Holdings, one of the shareholders of CLSA Premium which holds around 14.75% of the broker's issued share capital, has moved the resolution to wind up the business but failed for three times. The recent resolution was initiated last month.

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According to the notice published after the voting at the Extraordinary General Meeting (EGM) on Friday, 25 March 2022, as at the date of the EGM, the total number of issued shares was 2,033,290,000 Shares, which was the total number of shares entitling shareholders to attend and vote for or against the Resolution at the EGM.

Last September, CLSA Premium New Zealand Limited, the derivatives trading services arm of CLSA, was suspended by the New Zealand's Financial Market Authority (FMA) from offering derivatives to retail investors in New Zealand, along with a total pecuniary penalty of $770,000 for breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act.

The troubled broker issued a profit warning earlier this month expecting approximately HK$57 million annual losses for 2021.