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DRAFT SPEECH BY HON W C L BROWN, OBE, JP

LEGISLATIVE COUNCIL

shak

18.4.85

Professional Accountants (Amendment) Bill 1984

sir,

The

Three Bills introduced into this Council during the

1983/84 Session were held over for one reason or another to this

Session it is pure coincidence that I am Convener of all three of the LegCo Groups examining these pieces of legislation. Professional Accountants (Amendment) Bill 1984 is one of these

delayed Bills, and I speak this afternoon as Convener of the LegCo

Monetary Affairs Working Group, which has now reached agreement

with the Administration as to how the various issues involved can

best be resolved.

When this Bill was first introduced its main purpose

appeared to be no more than a straight forward, reasonable

proposal to tighten up on the residential requirements for

auditors in simple terms to ensure that those signing

certificates were physically in Hong Kong to supervise the work in

their offices and render expert advice to their clients.

The Bill had the strong support of the Council of the

Hong Kong Society of Accountants, but not unfortunately of all

auditors. No one seems to object to the principle of a

residential requirement, but to do so by legislation

as opposed

-

to the internal rules of the Hong Kong Society of Accountants seems to raise objections, to put it mildly, of those who believe

this Bill, by removing certain vested rights by law, would be at

least inequitable, and at worst seriously weaken the community's

faith in our legal framework and the rule of law.

In picking its way through the minefield of emotions raised by these issues the LegCo Group has gone into them in some

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