Hong Kong recently announced the plan for its own blank check listing framework with hopes for deals to begin by the end of this year. A special purpose acquisition company (“SPAC”) —another name for blank check companies— is a listed shell company created with the purpose of raising money through an Initial Public Offering (“IPO”) to then acquire a promising private company, in effect taking the company public without a traditional IPO. A SPAC is often referred to as a blank check company because when a SPAC raises money, the individuals buying shares during the IPO have no idea who the future target company will be.

The long-time debate between stakeholderism and shareholderism is becoming far more in favor of stakeholderism due to the increasing importance of Environmental, Social and Governance (“ESG”) initiatives. Shareholderism is the traditional school of thought that the responsibility of a corporation is to the shareholders only. Stakeholderism has been challenging this view with the idea that the responsibility of a corporation is to benefit all of its stakeholders – customers, employees, suppliers, communities and shareholders. The Chairman and CEO of Blackrock, one of the largest asset management companies in the world, recently wrote a letter to CEO’s emphasizing the importance of ESG to investors and the public. (Larry Fink, Blackrock).