WEDNESDAY, DECEMBER 7, 1983
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SIR JOHN ALSO PROPOSED TWO OTHER AMENDMENTS, BOTH PROMPTED BY REPRESENTATIONS.
ONE WILL ENSURE THAT A BANK OR DTC WILL NOT BE RESTRICTED IN THE EXTENT TO WHICH IT MAY LEND UNDER HIRE PURCHASE OR CONDITIONAL SALE AGREEMENTS SOLELY BECAUSE THERE IS A SINGLE GUARANTOR.
THE SECOND WILL ALLOW THE FINANCIAL SECRETARY TO EXEMPT SPECIFIED PUBLIC STATUTORY CORPORATIONS FROM THE LIMITATION OR LENDING BY A BANK TO A NON-LISTED COMPANY WHICH HAS A DIRECTOR IN COMMON WITH THAT BANK.
SELF CONTROL PREFERABLE, SIR JOHN
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INTERNAL SELF-CONTROL IS MUCH TO BE PREFERRED TO FURTHER LEGISLATION, WHICH IS A FINAL STEP ALWAYS TO BE HELD IN ABEYANCE AND USED ONLY IF OTHER MEASURES DO NOT PROVE SUCCESSFUL, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, SAID TODAY.
SIR JOHN WAS REPLYING TO A QUESTION BY THE HON LYDIA DUNN, AS TO WHETHER THE GOVERNMENT WAS SATISFIED WITH THE STANDARD OF AUDITING IN HONG KONG — IN THE LIGHT OF SOME RECENT COMPANY FAILURES, WHICH MIGHT HAVE INVOLVED THE FALSIFICATION OR INADEQUACIES OF ACCOUNTS.
SIR JOHN SAID THAT THE HONG KONG SOCIETY OF ACCOUNTANTS, IN ITS LAST ANNUAL REPORT, EXPRESSED GREAT CONCERN ABOUT COMMENTS IN THE MEDIA IMPLYING THAT AUDITORS MAY HAVE BEEN NEGLIGENT IN CERTAIN CASES IN WHICH COMPANIES ENGAGED IN PROPERTY SPECULATION AND FINANCE HAD COLLAPSED IN SPECTACULAR FASHION.
IN ADDITION TO ITS INTERNAL REVIEW, THE COUNCIL WAS DETERMINED TO EMPHASISE THE PROFESSIONALISM OF MEMBERS, THE REPORT POINTED OUT.
SIR JOHN SAID HE SHARED THE CONCERN OF THE RESPONSIBLE COUNCIL, WHOM HE HELD IN HIGH REGARD, +I WISH THEM WELL IN THE EXERCISE OF THE IR DETERMINATION, WHICH I SHALL OBSERVE WITH GREAT INTEREST,+ HE ADDED.
SIR JOHN SAID HE DID NOT INTEND TO GENERALISE FROM ONE OR TWO PARTICULAR INCIDENTS, AS THIS WOULD BE UNFAIR, MISLEADING AND QUITE DETRIMENTAL TO HONG KONG+.
+BUT THERE DO APPEAR TO ME ARGUABLY TO HAVE BEEN ISOLATED LAPSES BELOW THE HIGH STANDARDS THAT THE COMMUNITY RIGHTLY RESPECTS - AND INDEED MUST REQUIRE.
+THERE MAY OF COURSE ALSO BE LESSONS TO BE LEARNED FROM THE FORTHCOMING INSPECTORS' REPORTS INTO THE AFFAIRS OF EDA AND CARRIAN,+ HE SAID.
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