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Friday, February 16, 1973
LAW ON COMPANY PROSPECTUSES
Effective On March 1
The Registrar of Companies, Mr. W. Hume, drew attention today to
the notification in the Gazette that the Companies (Amendment) Ordinance 1972
will come into operation on March 1, 1973.
"One of the effects of the commencement of the Ordinance", said
Mr. Hume, "is that no prospectus may be issued on or after March 1 unless the
prospectus has been registered in the Companies Registry.
"The Ordinance, however, gives the Registrar of Companies power to
refuse to register a prospectus if it does not comply in all respects with
the Ordinance or contains any information likely to mislead."
Mr. Hume said that, subject to certain conditions being satisfied,
it was hoped to clear a draft prospectus within a few days of its receipt in
the Companies Registry,
The conditions were:
(1)
that three copies of the draft are presented in complete form, including accounts and valuation reports, although not necessarily including the final price or anticipated price/earnings ratio;
(2)
that the draft is presented in an easily readable form;
(3)
that any comments made by the Registrar are accepted by the parties concerned;
(4)
that the Chinese text is accurate and does not require a great deal of alteration; and
(5)
that there is an even flow of draft prospectuses into the Companies Registry not exceeding three per week.
/Mr. Hume