FX Broker CLSA Premium Dodges Wind Up Attempt for the Third Time

Around 80 percent of shareholders of the broker voted against the wind-up resolution.

At least 75 percent of votes are required to pass any such resolutions.

It was the third wind-up attempt that the shareholders of the brokers have voted against within the last couple of years.

KVB Holdings, which is one of the shareholders of the broker, moved the resolution to wind up the business last month. This shareholder also made earlier attempts to close the business but failed.

As much as 80 percent of the CLSA shareholders voted against the wind-up resolution, whereas only 20 percent of the shareholders voted in favor. To pass the resolution seeking the companys closure, at least 75 percent of the votes needed to be in favor.

KVB Holdings itself holds around 14.75 percent of CLSA Premiums issued share capital.

“As at the date of the EGM, the total number of issued Shares was 2,033,290,000 Shares, which was the total number of Shares entitling Shareholders to attend and vote for or against the Resolution at the EGM,” the notice published after the voting stated.

“It is noted that no parties had indicated in the Circular their intention to vote against or abstain from voting on the Resolution at the EGM.”

A Troubled Broker

CLSA now operates in Hong Kong and Australia. The broker also had a regulated presence in New Zealand, but it was forced to exit from that market for some serious anti-money laundering (AML ) breaches. It even had to pay a monetary fine of NZ$770,000 (around $546,676) to the Kiwi financial market regulator.

Meanwhile, the broker ended the first half of 2021 with around $3.8 million in losses and issued a profit warning earlier this month with approximately HK$57 million in expected annual losses for 2021, Finance Magnates reported earlier.