News & Insights

Home » News & Insights » Guzov, LLC’s International Counsel’s Corporate Corner – Activist Strategies in Controlled or Blockholder-Influenced Companies in Hong Kong and Germany

Guzov, LLC’s International Counsel’s Corporate Corner – Activist Strategies in Controlled or Blockholder-Influenced Companies in Hong Kong and Germany

Finance and Securities, Guzov's Legal News and Publications

To our understanding, hedge fund activism stands for minority investments in undervalued or poorly managed public companies by one or several investors, investment partnerships or activist funds based on strategic objectives and tactical measures carefully formulated in advance”

Guzov, LLC’s Ami de Chapeaurouge’s new paper, published in the Hong Kong Lawyer in both English and Chinese, examines shareholder activists’ demands and hedge fund activism in Hong Kong and Germany. De Chapeaurouge tackles empirical studies to illustrate the commonalities and dissimilarities between Hong Kong with China and Germany with Europe, and examines the behavior of shareholders and controllers in blockholder-influenced companies.

Germany and Hong Kong have strong and powerful economies, but are in need of greater shareholder and hedge fund activism, particularly in these controlled companies. A controlling shareholder justifies their superior position with their business skills, however, many of these controllers are handed their position through nepotism. Activists aim to enhance company value, monitor governance, and improve company efficiency, which is imperative for a healthy, competitive free market.

De Chapeaurouge’s analysis demonstrates the similarities between the two jurisdictions’ corporate cultures, which leads to similar shareholder activist tactics and behavior in Hong Kong and Germany. Read his new published article to gain a greater understanding of shareholder and hedge fund activism in these countries compared to the U.S. and U.K. Access the article here.

This article is Part I of three installments. The next installment will be published in July.

Recent Posts

Impact of Shorter COVID-19 Quarantine on Workplaces

On Monday, the CDC announced changes to its recommended isolation and quarantine time from 10 days to 5 days for asymptomatic people with COVID-19. They recommend that people leaving isolation after 5 days continue to wear a mask for the following 5 days. The CDC also...

Restaurants Sue Over Vaccine Mandate

Restaurant operators sued Mayor Bill de Blasio and New York City over Key to NYC, the new indoor vaccine mandate program, on August 17-the same day the mandate went into effect. A group of restaurants in Staten Island, through the Independent Restaurant Owners...

Financial Regulators’ New Target: Social Media Influencers and SPACs

The Financial Industry Regulatory Authority (“FINRA”) will conduct three new regulatory sweeps in an effort to combat various activities causing extreme fluctuations in the financial markets. FINRA has chosen to target special purpose acquisition companies (“SPACs”),...

Does WARN Apply to Virus Closures?

Enterprise, in Benson et al. v. Enterprise Leasing Co. of Florida LLC et al., has tried to argue that the Worker Adjustment and Retraining Notification Act (“WARN”), through its natural disaster exception, does not apply to closures caused by COVID-19. Two Florida...