China corporate governance push by King Parallel and Sodali
Corporate governance consultants King Parallel and Sodali have announced a strategic partnership to improve the response to shareholders from companies based in mainland China, Hong Kong and Macau.
The partnership will focus on improving corporate governance standards by offeirng advice to company boards and executive management, and in areas such as shareholder response and transactional services.
In particular the advice will focus on:
– Preparation and conduct of shareholder meetings, ordinary and extraordinary.
– Transactional services such as mergers and acquisitions, response to shareholder activists, contests for control, takeover bids, capital restructurings and other corporate actions in which maximization of equity and debt holders’ reach, understanding and support is requested.
– Advisory & Consulting services include corporate governance assessments and benchmarking, board evaluations, outreach and engagement with shareholders, as well as services related to IPOs.
– Institutional investor outreach, engagement, disclosure, communication and interviews with shareholders, proxy advisors, activist investors and other parties on matters related to shareholder meetings and transactional services.
While the partners are keen to note that Chinese companies need not “mimic” practices adopted by companies in the West, they note that local companies do need to adopt globally accepted best practice.
Mainland Chinese companies in particular are having to adopt improved corporate governance approaches in order to respond to statutory reforms initiated by the government in that country.
The expect demand for professional shareholder services and governance services to continue increasing.
Sodali is part of the GWM Group headquartered in Luxembourg. King Parallel Consulting is based in Beijing.