9
(a) Disclosure of Beneficial Ownership of Shareholdings
(b) Insider Dealing
(c) Distributable Profits
(d) Fiduciary Duties of Directors
1.12
It was accepted by all members that a power for private
companies to purchase their own shares could be very useful in dealing with succession problems arising on the deaths of shareholders.
1.13
Various professional and business organisations had been
consulted by the Standing Committee in 1985 when consideration of this
subject started and Members were interested to note that two of the leading professional organisations had thought that there was no need
to amend the existing law. One remarked:
"Generally we are concerned that the business environment in Hong Kong
may not be the right one in which to introduce the concept of a company
buying its own shares in the market or otherwise."
However, a leading
business organisation was in favour of introducing the new British
legislation and stated: "Our members have experience of current difficulties that seem peculiar to Hong Kong when handling work for, for
example, American companies. Their expectations regarding purchase by
In
a company of its own shares is at variance with the present law. general terms, the current prohibition seems to hinder rather than to assist economic development." Another thought that the power to allow
companies to purchase their own shares would not be undesirable in principle provided that a number of basic requirements were followed including requirements that correct accounting entries and treatment of the transaction were properly prescribed and that any restrictions on the transaction would be subject to the proper supervision by the appropriate Government
Departments.
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