6
FRIDAY, JULY 18, 1980
HOWEVER, THE BULK OF THE RECOMMENDATIONS HAVE NOT YET
BEEN IMPLEMENTED AND MOST OF THESE ARE DEALT WITH BY THE PRESENT BILL.
A FEW ARE NOT DEALT WITH IN THE BILL, IT BEING FELT THAT IT WOULD NOT BE APPROPRIATE TO IMPLEMENT THEM AT THIS TIME.
THE SPOKESMAN SAID THAT AS ALREADY INDICATED, THE BILL CONTAINS PROVISIONS DEALING WITH SOME OF THE MOST IMPORTANT ASPECTS OF COMPANY LAW.
TO TAKE A FEW EXAMPLES, THE BILL CONTAINS PROPOSED AMENDMENTS TO THE COMPANIES ORDINANCE WHICH, IF IMPLEMENTED, WOULD
*
INSERT IN THE ORDINANCE A GENERAL STATEMENT OF THE FIDUCIARY DUTY OF DIRECTORS TO THE IR COMPANIES-
* PROHIBIT THE DIRECTORS OF A COMPANY FROM
DISPOSING OF THE WHOLE OR SUBSTANTIALLY THE WHOLE OF THE UNDERTAKING OR PROPERTY OF THE COMPANY UNLESS SUCH DISPOSAL HAS BEEN APPROVED BY THE COMPANY IN GENERAL COMMITTEE-
* PROHIBIT A BODY CORPORATE, FOR EXAMPLE A
NOMINEE COMPANY, FROM ACTING AS A DIRECTOR OF A COMPANY-
*
PROHIBIT COMPANIES FROM MAKING LOANS TO DIRECTORS EXCEPT WHERE SUCH LOANS COME WITHIN THE EXPECTED CATEGORIES DETAILED IN THE BILL-
* GIVE THE REGISTRAR OF COMPANIES POWER TO REQUIRE A COMPANY TO ABANDON ITS NAME IF THAT NAME GIVES SO MISLEADING AN INDICATION OF THE NATURE OF ITS ACTIVITIES AS TO BE LIKELY TO CAUSE HARM TO THE PUBLIC-
* PROHIBIT A SUBSIDIARY FROM ACQUIRING SHARES
IN ITS HOLDING COMPANY-
* PROHIBIT DIRECTORS FROM ISSUING SHARES IN
A COMPANY WITHOUT THE PRIOR APPROVAL OF THE COMPANY IN GENERAL MEETING, WHICH PRIOR APPROVAL MAY BE GIVEN BY A GENERAL MANDATE RENEWABLE ANNUALLY=
*
BRING THE PROVISIONS ON APPOINTMENT, REMOVAL AND RESIGNATION OF AUDITORS SUBSTANTIALLY INTO LINE WITH THOSE EXISTING IN GREAT BRITA ÍN-
* MAKE IT A STATUTORY REQUIREMENT THAT EVERY
COMPANY MUST APPOINT A SECRETARY-
*
PROHIBIT ANY OVERSEAS COMPANY WHICH IS NOT REGISTERED UNDER PART X1 OF THE COMPANIES ORDINANCE FROM ACQUIRING OR HOLDING ANY LAND
IN HONG KONG.