China Smartpay (HK:8325) 22-August-2016

Disclaimer: These are excerpts from student assignments conducted as part of a Corporate Finance class. The opinions represented do not necessarily agree with mine. I do not vouch for the quality of the recommendations or the accuracy of the numbers. Follow the recommendations on your own risk.

@LSEPKUSummerSch #CorpFin #students give voting recommendations for the #AGM of #ChinaSmartpay $HK8325 today

#students approve of current directors, applaud good performance but recommend more representation of minority shareholders #AGM of #ChinaSmartpay $HK8325 #CopGov #Boards

#students think current leverage low, should finance investment with debt rather share issuance as proposed #CorpFin #Leverage #ChinaSmartpay $HK8325

#students also point out that proposed limit for #share #issuance rather high, fear dilution #ChinaSmartpay $HK8325 #CorpFin #Equity

Proposal	Excerpt of Student Recommendations
Proposal	For	Against
(2)Director election	Enough independent directors to supervise management Recent performance is satisfactory, profitability laudable	Potential conflicts of interest, with directors owning a great fraction of shares. Possible representation of minority shareholders should be considered
(4)Authorization to issue shares / repurchase shares	In general shareholders may benefit from repurchases; current leverage is low and could be higher	Limit for equity issuance on the high side (20%) – potential dilution too high Leverage is already very low, debt preferable to equity issuances

Results:

http://www.moqixu.com/wp-content/uploads/2016/08/GLN20160822031.pdf

Dr. Moqi Groen-Xu
Senior Lecturer-Queen Mary University of London, School of Economics and Finance