CONFIDENTIAL

XCC(91)151

LEGISLATIVE TIMETABLE

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Subject to Members' approval for introduction of the Bill into the Legislative Council, the legislative timetable will be -

Publication in Gazette

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25 October 1991

First Reading and commencement of Second Reading debate

6 November 1991

Resumption of Second Reading

6 November 1991

debate, Committee stage

and Third Reading

Members will wish to note the proposed tight legislative timetable which is based upon the assumption that the new voluntary package will be agreed by SEHK members on 30 October. This is necessary to minimise any period in which the statutory package is in effect should the SFC feel it necessary to impose it on an interim basis (see paragraph 8). Should the voluntary package not be agreed by SEHK members, we will consider proposing extending the period for consideration of the Bill.

PUBLIC REACTION

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SEHK reform proposals have been widely debated in the press and have been the subject of considerable controversy. However, public opinion favours reform of SEHK in general and modifications to the proxy voting system in particular. The public is aware that these amendments form part of the reform package discussed between the SFC and SEHK. If SEHK adopts the reform package on 30 October, the public is likely to welcome the proposals in the Bill. If SEHK rejects the package, some sections of the media may allege that the amendments are being made against the will of SEHK members.

PUBLICITY

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A press release will be issued and a spokesman from the Monetary Affairs Branch will be made available for media interviews.

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