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FRIDAY, JULY 18, 1980
UNTIL THE NEW EXCHANGE COMPANY HAS ELECTED ITS FIRST COMMITTEE, A TRANSITIONAL COMMITTEE WILL BE RESPONSIBLE FOR ITS MANAGEMENT AND OPERATION. THE TRANSITIONAL COMMITTEE WILL COMPRISE TWO REPRESENTATIVES FROM EACH OF THE PRESENT EXCHANGES AND ADMINISTRATIVE ASSISTANCE WILL BE PROVIDED BY THE OFFICE OF THE COMMISSIONER FOR SECURITIES.
THE TRANSITIONAL COMMITTEE WILL INVITE EACH MEMBER OF THE EXISTING FOUR EXCHANGES TO APPLY FOR A SHARE IN THE COMPANY. WITHIN THREE MONTHS OF THE RECEIPT OF APPLICATIONS, THE TRANSITIONAL COMMITTEE WILL HAVE TO PROCESS THEM AND EITHER ACCEPT OR REJECT THEM.
ANYONE WHOSE APPLICATION IS REJECTED WILL HAVE ONE MONTH TO APPEAL TO THE SECURITIES COMMISSION.
THE TRANSITIONAL COMMITTEE IS OBLIGED TO ARRANGE FOR THE ELECTION OF THE COMMITTEE OF THE EXCHANGE COMPANY. IT MUST DO THIS WITHIN FOUR MONTHS FROM THE CLOSING DATE FOR APPLICATIONS.
IF THE TRANSITIONAL COMMITTEE OR THE COMMITTEE FAILS TO DISCHARGE ITS FUNCTIONS, THE FINANCIAL SECRETARY CAN APPOINT A PERSON TO ACT IN ITS PLACE.
+THIS POWER WOULD BE EXERCISED ONLY ON THE ADVICE OF THE SECURITIES COMMISSION AND IF THE FINANCIAL SECRETARY CONSIDERED THAT THE PUBLIC INTEREST DEMANDED IT, THE SPOKESMAN SAID.
+GIVEN THE CO-OPERATION OF THE TRANSITIONAL COMMITTEE AND, SUBSEQUENTLY, OF THE COMMITTEE, THIS POWER WILL NOT BE USED.+
THE BILL STIPULATES THAT ONLY MEMBERS OF THE COMPANY WILL BE ELIGIBLE FOR ELECTION TO THE COMMITTEE, WITH THE CHAIRMAN BEING CHOSEN EACH YEAR BY SECRET BALLOT. THE CHAIRMAN, THOUGH HE MAY BE RE-ELECTED, CANNOT SERVE FOR MORE THAN TWO TERMS CONSECUTIVELY.
THE BILL SAYS THAT THE EXCHANGE COMPANY WILL HAVE TO SATISFY THE SECURITIES COMMISSION THAT IT HAS ADEQUATELY PROVIDED FOR MATTERS RELATING TO MEMBERSHIP, LISTING RULES AND A COMPENSATION FUND.
THESE PROVISIONS MUST BE INCLUDED IN THE EXCHANGE COMPANY'S CONSTITUTION, ANY AMENDMENTS TO WHICH WILL REQUIRE THE COMMISSION'S APPROVAL.
INITIALLY, ONLY FULL MEMBERS AND OVERSEAS MEMBERS OF THE EXISTING FOUR EXCHANGES WILL BE ELIGIBLE TO JOIN THE NEW EXCHANGE COMPANY.
EXISTING FULL MEMBERS CAN OPT FOR MEMBERSHIP OR ASSOCIATE MEMBERSHIP OF THE NEW COMPANY, BUT EXISTING OVERSEAS MEMBERS ARE ELIGIBLE FOR ADMISSION AS ASSOCIATE MEMBERS ONLY.
THE ADMISSION AS ASSOCIATE MEMBERS OF EXISTING OVERSEAS MEMBERS WILL MEAN LITTLE CHANGE IN THEIR POSITION THEY WILL CONTINUE TO HAVE NO SUBSTANTIVE VOTING RIGHTS AND WILL STILL HAVE TO DEAL THROUGH A MEMBER.
THE SPOKESMAN