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Wednesday, November 1, 1972
"It is not the purpose of the Bill to establish any form of government
vetting machinery over new issues, but only to make sure that adequate and
accurate information is given in prospectuses.
"If companies whose prospects are not particularly sound come to
the market, this should be revealed in the prospectuses and it will be up to
the public and the Press to form their own judgements as to their worth," he said.
Earlier in his speech before dealing with the Bill itself, Mr. Haddon-
Cave made three preliminary points.
First, he said, he makes no apology for the fact that the Bill is
being introduced into the Council more than a year after the finalisation of the
Report of the Companies Law Revision Committee to which, in part, it seeks to
give effect.
He explained: "The Hong Kong economy is one which thrives on free
enterprise and when the Government makes proposals which interfere with the
operations of the market mechanism, it behoves us to ensure that what we are
and that the rules laid down will proposing is in the broader public interest;
improve, and not simply impede, the way in which the market mechanism operates."
Secondly, he said, contrary to what some less responsible critics
have tried to claim, it is not a simple task to consider all the recommendations
in the Report, and, where they are acceptable, to translate then into the
precise language of legislation.
"It is, in fact, a difficult and time consuming task and it is important
to avoid making mistakes," he added.
Finally, the Financial Secretary stressed that the Bill and the others
to follow are not being introduced in any sense of panic, but are being brought
forward after careful and dispassionate consideration.
/He continued: ................