Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

<p>The headcount rule applies to Cayman Island and Bermuda incorporated companies listed on the Hong Kong exchange undergoing a scheme of arrangement. Around 75% of companies listed in Hong Kong are domiciled in the Cayman Islands or Bermuda and this pesky rule has caused several nasty surprises; PCCW, Glorious Property and New World China Land (first privatization attempt) come to mind. </p><p>In this insight, we examine precedent cases, legal doctrines, company filings and historical commentary. We pen down the key things you need to know about the headcount rule and how it affects transactions in Hong Kong.</p>

The headcount rule applies to Cayman Island and Bermuda incorporated companies listed on the Hong Kong exchange undergoing a scheme of arrangement. Around 75% of companies listed in Hong Kong are domiciled in the Cayman Islands or Bermuda and this pesky rule has caused several nasty surprises; PCCW, Glorious Property and New World China Land (first privatization attempt) come to mind. In this insight, we examine precedent cases, legal doctrines, company filings and historical commentary. We pen down the key things you need to know about the headcount rule and how it affects transactions in Hong Kong.

A Guide to the Headcount Rule and How It Affects Schemes in Hong Kong