Reconstitution of the Stock Exchange
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The SRC also places great importance on the reconstitution of the SEHK, in particular its governing body, which should have broadly-based membership. There should be representatives of both individual and corporate members as well as independent (lay) members to ensure that all interests are represented. The voluntary amendments proposed by the Management Committee of the SEHK to its Memorandum and Articles of Association (Memart) were endorsed
were endorsed by Members at the meeting held on 28 June 1988 vide memorandum XCC (88) 96. The proposed amendments will now
amendments will now be put to members
to members of the SEHK for adoption at an Extraordinary General Meeting (EGM) scheduled for 20 July 1988. A timetable for the reconstitution of the Exchange's governing body is at Annex C.
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If the EGM in July fails to adopt the amended Memart because of inadequate support from the shareholders, we shall revert to the Council for their approval of draft legislation.
Central Clearing House for Stock Transactions
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As regards the central clearing of stocks, the SRC recommends the establishment of a statutory non-profit-making clearing house. The Committee suggests that the ownership of the new clearing house should be shared between the SEHK and the major banks. The SEHK has presented an outline proposal to the parties concerned and there will soon be discussion on this matter.