| Abstract | Another fine haul for corporate governance in Hongkong this week. Wah Kwong Shipping was on the mat for lending $38.4 million to director Frank Chao who did not bother to mention the fact to shareholders. No matter that these loans were fully repaid. No matter that Frank Chao, who evidently signed a company cheque to himself, paid interest of 1.25 per cent over LIBOR for his overdraft. The point is that public companies do not exist to provide private banking facilities for their proprietors. And, if they do, the fact must be promptly disclosed. |
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