The SFC has become increasingly concerned that some listed companies are acquiring or selling assets at improperly assessed prices, resulting in losses to listed companies and their shareholders.

Summary -

The Securities and Futures Commission (SFC) recently issued (a) a guidance note on directors’ duties in the context of valuations in corporate transactions (the Guidance Note); (b) a circular to financial advisers regarding valuations in corporate transactions (the Circular); and (c) a statement on the liability of valuers for disclosure of false or misleading information (the Statement). The key points to note in relation to the abovementioned documents include...