HONG KONG LEGISLATIVE COUNCIL -8 March 1989
香港立法局
一九八九年三月八日
37
prior to 1 April 1989, a reference to "1 July 1989" be substituted for the reference to "1 April 1989" in that section.
He said: Sir, I move the motion standing in my name on the Order Paper.
The purpose of the resolution is to allow the Futures Exchange to postpone holding its third Annual General Meeting by a further three months to 1 July 1989.
To facilitate the self-initiated reforms of the Futures Exchange along the lines proposed by the Securities Review Committee, the Hong Kong Futures Exchange Limited (Temporary Provisions) Ordinance was enacted on 14 July 1988. This effectively postponed the holding of the third Annual General Meeting of the Hong Kong Futures Exchange Limited due to be held on or before 30 September 1988 by a period of up to six months to 1 April 1989. Section 5 of the Ordinance provides for a further postponement of three months by resolution of this Council.
The Hong Kong Futures Exchange held an Extra-ordinary General Meeting on 23 February 1989 to seek shareholders' endorsement of its reconstitution package which aimed at improving the structure, operational efficiency and risk management of the Futures Exchange along the lines recommended by the Securities Review Committee. Whilst three resolutions which concerned revisions to capital requirements and the membership structure were passed without difficulty, a fourth resolution which concerned reconstitution of the board and the proposed disenfranchisement in due course of non-member shareholders and those members in default of their obligations was endorsed by just over 74% of the votes cast at the meeting, thus narrowly missing the 75% majority vote required for its adoption as a special resolution.
The fact that the reconstitution proposals were supported by almost all active member-shareholders who attended the Extra-ordinary General Meeting indicates general support of market users for the constitutional reforms put forth by the Board of the Futures Exchange. In view of these encouraging signs, it is essential for the present board of directors, including those appointed by the Government, who have been instrumental in proposing these reforms, to retain their positions for a few more months to assist in seeing through a full reconstitution of the exchange.
Sir, I beg to move.
Question proposed, put and agreed to.