EXISTING

Size of Council

22

of which

Brokers

Independents

Executives

Selection Criteria for Brokers

SEIK COUNCIL, RESTRUCTURE

Annex

SEHK VOLUNTARY

FORMAL REQUEST PROPOSAL

30

30

16

17

16

5

10

12

3

2

Pyramid

No

Yes

Category 1

4 individuals

4 for Top 12 brokers

Category 2

4 corp. directors

5 for next 48 brokers

Category 3

8 "Free Float"

8 "Free Float"

Nominated by

Nominating Committee

Members (Free Float)

Yes

4 for Top 12 Brokers

5 for next 48 brokers

7 for balance of Membership

Categories 1 & 2

Category 3

Categories 1 & 2 Category 3

Categories 1, 2 & 3

Phase-in for New Structure

Not applicable

Securities & Futures Commission.

August 20, 1991

Yes

Yes

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