Global Value Investing

[Owl88]

Hi Will, your last post about great capital allocators etc was about Nanyang or Keck Seng ?

In general I dont agree that the HK Listing rules really protect minority investors.

For example in Nanyang, the board pay themselves huge salaries for not doing much. As minorities we can't vote them out; and even the "independent directors" and nomination committees (if a company has one) are usually friends of the majority family owners.

Its easy to find an "independent financial adviser" firm to make a ruling on the price of a related party transaction. So prime assets can be moved out at low valuations, and duff assets can be bought by a listco at high valuations.

And we havent even touched on non-fully owned subsidiaries, where the family can pay themselves large contracts, bonuses and directors fees, and award contracts to "non-connected" (at least in the eyes of the exchange rules) friends and acquaintances .....