David Michael Webb
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David Michael Webb, usually known as David Webb, is a well-known activist and share market analyst in Hong Kong. He is a retired Investment Banker, and now devotes his time to corporate governance advocacy and researches on small companies listed on the Hong Kong Stock Exchange, and is frequently called upon by the media to comment on all matters relating to company governance.
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[edit] Biography
Webb graduated in Mathematics from Exeter College, Oxford in 1986. He worked as an investment banker in London, and moved to Hong Kong in 1991. He retired from Investment Banking in 1998. Webb lobbies extensively for increased transparency and public accountability of Directors of public companies as well as for the Government of Hong Kong[1].
[edit] Activism
He uses the webb-site.com as his official mouthpiece on all matters commercial and political[2].
He has purchased shares in all the companies which form the Hang Seng Index, and demands formal votes to resolutions which he judges detrimental to the interests of minority shareholders during the annual general meeting of public listed companies, in particular pre-emption of rights issues and share dilutions.
[edit] Hong Kong Stock Exchange
He argues that there is inherently conflict between the commercial and regulatory roles of the Hong Kong Stock Exchange, and has been arguing for a super regulatory authority to assume that role. In the meantime, he argues for improved investor representation on the Hong Kong Stock Exchange.
He has been elected an independent non-executive director of Hong Kong Exchanges and Clearing Ltd. ("HKEX") since 2003. He was re-elected by a landslide in April 2006[3].
In 2007, he spoke up against the vested interests of smaller local stockbrokers acting against investors' interests, and was the only member to vote against reversing the decision by the former board of directors to cut minimum trading spreads for equities and warrants trading at between 25 HK cents and HK$2. The reforms were to be implemented this quarter, but was put back on the table following protests by brokers[4].
[edit] Cyberport
As an example of Webb's activism, in October 2004, he cited lack of transparency in the government's business dealings and demanded the government's Chief Information Officer for audited financial accounts and directors' reports for three companies related to the project, namely Hong Kong Cyberport Development Holdings Ltd., Hong Kong Cyberport Management Ltd. and Hong Kong Cyberport (Ancillary Development) Ltd., to be released under the non-statutory Code on Access to Information
The Cyberport projected was granted to Richard Li, son of Hong Kong's wealthiest man Li Ka-Shing, without the benefit of a formal tender.
[edit] Disneyland
In 2005, Webb criticised the government for its lack of accountability, through its refusal to uphold a promise of independent directors on the board of Hong Kong Disneyland. The Hong Kong Government was heavily involved in the project, and is the company's 57% shareholder[5].
[edit] Other
His makes annual Christmas share tips where he would recommend undervalued but well-run companies, and these have been known to influence the price of stock strongly[6].
Webb was named in CFO Magazine Global 100, as a "Gadfly" in 2002[7].
[edit] References
- ^ Clifford, Mark (May 19, 2003). A Crusader in Hong Kong. Business Week. Retrieved on March 20, 2007.
- ^ Hong Kong Confidential. Hong Kong Standard (December 6, 2005). Retrieved on March 19, 2007.
- ^ Hilken, Daniel (April 27, 2006). HKEx rings changes after vote for reform. Hong Kong Standard. Retrieved on March 19, 2007.
- ^ Cheung, Jackie (February 15, 2007). Plan for tighter spreads dropped. Hong Kong Standard. Retrieved on March 19, 2007.
- ^ Crets, Doug (November 21, 2005). Promise on Disney directors `broken'. Hong Kong Standard. Retrieved on March 19, 2007.
- ^ Lee, Yvonne (December 5, 2006). Sino Golf drives 36pc as Webb festive pick. Hong Kong Standard. Retrieved on March 19, 2007.
- ^ Calabro, Lori (June 28, 2002). The Global 100: Gadflies. CFO Magazine. Retrieved on March 20, 2007.
