(Cup. 12.)
(CA. 12.)
20
20
Ordinance or otherwise under consideration by the Commissioner, or in respect of which a prospectus or any take-over document is, to his knowledge, being considered by the Registrar of Com- panies for registration under the Companies Ordinance.
(5) Subsection (4) does not apply to or in respect of any right of the holder of a security by virtue of being that holder- (a) to exchange the security or convert it to another form
of security;
(b) to participate in a scheme of arrangement approved by
the Court under the Companies Ordinance; (e) to subscribe for other securities or dispose of a right
to subscribe for other securities:
(d) to charge or pledge the security to secure the repayment
of money:
(e) to realize the security for the purpose of repaying money
referred to in paragraph (d); or
() to realize the security in the course of performing a
dury imposed by law.
(6) Where any member of the Commission or any person employed in the administration of this Ordinance is, in the course of his duties, required to consider any matter relating to-
(a) securities in which he has an interest or any corporation
in the securities of which he has an interest;
(b) securities of the same class as securities in which he has
an interest; or
(2) a person-
() with whom he is or has been employed or associated:
(ii) of whom he is or has been a client; or
(ii) who is or was a client of a person with whom be is or was employed or associated,
be shall forthwith so inform the Commission or the Commis- sioner.
(7) Any person who, without lawful authority or reasonable excuse, contravenes subsection (1), subsection (4), or subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine of $10,000 and to imprisonment for 6 months.
21
PART II
STOCK EXCHANGES
20. (1) No person shall-
(a) establish or operate a stock market that is not the stock
market of a stock exchanges or
(b) assist in the operation of a stock market that, to his knowledge, is not the stock market of a stock exchange.
Restriction
on establish- ment of stock exchanges.
Restriction
(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine of $500,000 and, in the case of a continuing offence, to a further fine of $50,000 for each day during which the offence continues.
21. (0) No person, other than a stock exchange, shall- (a) take or use the title "stock exchange"; or (b) take or use, or have attached to or exhibited at any exchange",
place, any title which resembles the title "stock exchange" or so closely resembles that title as to be calculated to deceive.
(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine of $100,000 and, in the case of a continuing offence, to a further fine of $5,000 for each day during which the offence continues.
on use of the title "*s.bock
22. Any dealer who transacts a dealing in securities at or Dealer not through a stock market in Hong Kong which, to his knowledge, is to deal in not the stock market of a stock exchange shall be guilty of an offence, and shall be liable on conviction to a fine of $50,000 in respect of each such dealing.
securities in a stock market that is not a stock exchange.
23. (1) Any authorized officer may, with the assistance of Power of such other officers as may be necessary, without warrant-
(a) enter and search any premises in which he reasonbly suspects that an offence against section 20 or section 22 is being or has been committed; and
(6) remove and detain any thing which he has reason to
believe is evidence of the commission of the offence.
(2) Any such officer may, in the exercise of the powers conferred on him under subsection (1)-
(a) break open any outer or inner door of any premises which he is empowered to enter under that subsection;
entry and search, etc.