CLSA Premium Faces Another Wind Up Request

The Hong Kong-based forex broker, CLSA Premium Limited (HKG:6877), is facing the possibility of business winding up again as one of its shareholders requested for a vote on whether it should continue operating or not. 

The majority voted against two previous requests in a couple of years, so it’s likely this time too will go through with little resistance from those who want out sooner rather than later.

The latest requisition request was made by KVB Holdings Limited, which also offered the previous wind-up requests. KVB Holdings is the largest shareholder, with 14.75% of CLSA Premium’s issued share capital.

According to Yuan Feng, Executive Director of CLSA Premium, the Board announced that it had received a letter from the Requisitionist on January 28, 2022 (the ‘Letter’), requesting the Company to call an extraordinary general meeting to consider and, if thought fit, approve a special resolution regarding the same Requisition Resolution.

Failed Wind Up Attempt

The majority of the shareholders must consent to a wind-up order, but it can be done with the support of at least 75% of the investors. Except for KVB, most of the CLSA owners voted against the Company’s request for dissolution in both votes.

Meanwhile, albeit for a time, CLSA is already in difficulties owing to regulatory action taken against it in New Zealand. Despite having previously been fined by the Kiwi regulator for anti-money laundering (AML) violations. Recently, the broker announced that it would be closing operations there.

CLSA has now abandoned two markets, Hong Kong and Australia, following its problems in New Zealand. However, the Company’s operations are not going well in these areas. It reported losses of around $3.8 million for the first half of 2021 and issued a profit warning earlier this month with expected annual losses of HK$57 million for 2021.

Looking for a trusted and reliable Forex broker? Check out who is the best service provider broker of the year.