HKSI Paper 1 Business operations and practices question: complete under the Listing Rules

HKSI Paper 1Business operations and practices

Ms Chen joined the board of a Main Board issuer on 2 March 2026. She has never been a director of a Main Board or GEM issuer, but until December 2025 she was a director of a Nasdaq-listed company. What minimum training must she complete under the Listing Rules?

A At least 24 hours of continuous professional development by 2 September 2027
B At least 12 hours of continuous professional development by 2 March 2027
C No minimum hours, as her recent Nasdaq directorship means she is not a first-time director
D At least 12 hours of continuous professional development by 2 September 2027

Show the answer and explanation

Answer: D. At least 12 hours of continuous professional development by 2 September 2027

Main Board Rule 3.09H (effective 1 July 2025) defines a first-time director by reference to Main Board and GEM directorships only, so Ms Chen is a first-time director. First-time directors must complete at least 24 hours of continuous professional development within 18 months of appointment, but only 12 hours if they served as a director of an issuer listed on another exchange within the three years before appointment. Her Nasdaq role ended in December 2025, inside that window, so 12 hours are due within 18 months of 2 March 2026, that is by 2 September 2027. Twenty-four hours ignores the reduction. Twelve months is the wrong period. An overseas directorship reduces the hours but does not remove first-time status. Every director also needs CPD each financial year under Rule 3.09F. Source: Main Board Listing Rules 3.09F, 3.09G and 3.09H and Note 1 (effective 1 July 2025); HKEX Consultation Conclusions (December 2024) (as at October 2026).

Common mistake

Candidates either apply the full 24 hours or assume overseas board experience exempts the director altogether. It only reduces the minimum to 12 hours.

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