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WEDNESDAY, NOVEMBER 27, 1974
COMPANIES (AMENDMENT) BILL PASSED
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THE COMPANIES (AMENDMENT) BILL 1974, AIMED AT GIVING BETTER PROTECTION TO THE GENERAL PUBLIC, WAS PASSED INTO LAW TODAY WITH SOME AMENDMENTS.
THE AMENDMENTS WERE PROPOSED BY AN AD HOC GROUP FORMED BY UNOFFICIAL MEMBERS TO STUDY THE PROPOSALS IN THE BILL IN VIEW OF THE IMPORTANCE OF THE DRAFT LEGISLATION.
QNE OF THE CHANGES CONCERNED THE COMMENCEMENT DATE OF THE NEW REQUIREMENTS.
ORIGINALLY THE BILL PROPOSED TO GIVE SIX MONTHS NOTICE FROM ITS PUBLICATION TO APPLY TO ACCOUNTS FOR THE CURRENT FINANCIAL YEAR ENDING ON OR AFTER DECEMBER 31 THIS YEAR, BUT THE
AD HOC GROUP PROPOSED THAT THE COMMENCEMENT DATE BE AMENDED TO OCTOBER 1, 1975 SO AS TO ALLOW MORE TIME FOR COMPANIES TO COMPLY WITH THE NEW REQUIREMENTS.
+THAT IS, THE NEW REQUIREMENTS SHOULD BEGIN TO APPLY IN RESPECT OF ACCOUNTS COVERING FINANCIAL YEARS ENDING ON OR AFTER SEPTEMBER 30, 1975, THE HON. LEE QUO-WEI EXPLAINED.
ANOTHER AMENDMENT CONCERNED THE PERIOD WITHIN WHICH ANNUAL REPORTS AND ACCOUNTS SHOULD BE SENT TO MEMBERS AND OTHER PERSONS ENTITLED TO RECEIVE THEM.
MR. LEE NOTED THE BILL PROPOSED THAT THE REPORTS AND ACCOUNTS BE SENT TO MEMBERS NOT LESS THAN SEVEN DAYS BEFORE AN ANNUAL GENERAL MEETING WHILE THE EQUIVALENT STATUTORY PERIOD IN THE UNITED KINGDOM WAS 21 DAYS.
HE FELT, HOWEVER, THAT A PERIOD OF 14 DAYS AS RECOMMENDED BY THE COMPANIES LAW REVÍSION COMMITTEE WOULD SEEM TO BE THE MORE LOGICAL PERIOD BECAUSE +A PERIOD OF SEVEN DAYS IS BY ANY MEASUREMENT A BIT SHORT FOR SHAREHOLDERS AND OTHER INTERESTED PARTIES TO STUDY THE REPORTS AND ACCOUNTS.+
MR. LEE THEN COMMENTED ON THE PROPOSED LEGISLATION' WHICH GIVES BANKING COMPANIES, INSURANCE COMPANIES AND SHIPPING COMPANIES CERTAIN EXEMPTIONS FROM THE FULL ACCOUTING REQUIREMENTS.
HE POINTED OUT THAT IF ANY SUCH EXEMPTIONS ARE AVAILED OF THE AUDITORS ARE ONLY REQUIRED TO REPORT WHETHER THE COMPANY'S ACCOUNTS AND GROUP ACCOUNTS WHERE APPLICABLE HAVE BEEN PROPERLY PREPARED IN ACCORDANCE WITH THE COMPANIES ORDINANCE.+
+AS NOTHING NEED BE SAID ABOUT THE TRUE AND FAIR VIEW OF THE STATE OF AFFAIRS AND THE PROFIT OR LOSS SHOWN BY THE ACCOUNTS, THE ABSENCE OF THOSE WORDS MAY BE TAKEN TO IMPLY, TO THE LAY PUBLIC IF NOT TO THE INFORMED FEN, THAT SUCH A VIEW IS NOT PRESENTED.+
/THEREFORE,
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