On 29 July 2022, the Stock Exchange of Hong Kong Limited (the “Exchange”) published the conclusions of its consultation on proposed amendments to the Listing Rules in relation to share schemes (including both share option schemes and share award schemes) of listed issuers and their subsidiaries.
To enhance the Share Schemes regulation to manage dilution of listed shares and provide informative disclosure to maintain high levels of shareholder protection, the Exchange published a consultation paper (the “Consultation Paper”) on 29 October 2021 which set out proposed amendments to the Listing Rules in relation to Share Schemes of listed issuers and their subsidiaries to provide a consistent framework to govern both grants of share options and share awards. The consultation period ended on 31 December 2021.
Having carefully considered the responses received, the Exchange concluded that the proposals outlined in the Consultation Paper should be adopted with modifications to reflect respondents’ comments where appropriate. Those modifications mainly relate to the role of the remuneration committee, vesting period for share awards and options, and share schemes of subsidiaries.
The key amendments to the Listing Rules will become effective on 1 January 2023.