WEDNESDAY, JANUARY 25, 1984
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* TO CONSIDER THE QUESTION OF GENERAL FIDUCIARY DUTY
OF DIRECTORS.
* TO CONSIDER WHETHER THE PROPOSED NEW SECTION 162 (DISCLOSURE BY DIRECTORS OF MATERIAL INTEREST IN CONTRACTS) SHOULD BE EXTENDED AS HAS BEEN DONE IN BRITAIN BY SECTION 60 OF THE COMPANIES ACT 1980.
MR BROWN NOTED THAT THESE WERE JUST A FEW OF THE INITIAL 22 ITEMS WHICH THE ADMINISTRATION HAD AGREED TO REFER TO THE NEW STANDING COMMITTEE.
+I FEEL IT WOULD ASSIST ALL OF US IN UNDERSTANDING OUR COMPANY LEGISLATION IF, IN THE EVENT THE STANDING COMMITTEE WERE TO RECOMMEND SIGNIFICANT FURTHER CHANGES TO OUR COMPANY LAW, WE PRODUCED AN ENTIRELY NEW BILL RATHER THAN ANOTHER VOLUMINOUS AMENDMENT BILL, HE ADDED.
HE SAID THAT AT THE COMMITTEE STAGE AMENDMENTS WOULD BE MOVED BY UNOFFICIAL MEMBERS WHICH AS A WHOLE HAD THE UNANIMOUS SUPPORT OF THE WHOLE AD-HOC GROUP.
RECALLING THE AD-HOC GROUP'S DELIBERATIONS ON THE BILL, HE SAID, THE COMPLEXITY OF THIS BILL IS PERHAPS SELF-EVIDENT BUT IT SHOULD BE NOTED THAT THE PROPOSALS WERE FIRST PUBLISHED AS A DRAFT BILL ON JULY 18, 1980. THE LEGCO AD-HOC GROUP TOOK THE UNUSUAL STEP OF DELIBERATING ON COMMENTS FROM THE PUBLIC AND REACHING AGREEMENT WITH THE ADMINISTRATION ON MANY CHANGES WHILE THE BILL WAS STILL IN ITS DRAFT FORM.
+IN SHORT, THE BILL NOW BEFORE US ALREADY INCLUDES SOME 41 AMENDMENTS AND SEVEN DELETIONS PROPOSED BY THE AD-HOC GROUP AND THESE IN TURN AFFECT MORE THAN 70 SECTIONS OF THE PRINCIPAL ORDINANCE.
+ AND MY COLLEAGUES ARE GRATEFUL TO THE ADMINISTRATION FOR THE HELP, ASSISTANCE AND UNDERSTANDING RECEIVED DURING THE CONSULTATIVE PROCESS AND FOR AMENDING THE DRAFT BILL TO ACCOMMODATE OUR SUGGESTION, HE SAID.
NUMEROUS REPRESENTATIONS HAD BEEN RECEIVED FROM THE LAW SOCIETY OF HONG KONG, THE HONG KONG SOCIETY OF ACCOUNTANTS AND MANY OTHER PROFESSIONAL BODIES, BUT ALSO FROM ORDINARY MEMBERS OF THE PUBLIC, HE SAID.
+THIS, TOGETHER WITH THE FACT THAT THE AD-HOC GROUP HAS MET ON 15 OCCASIONS TO DELIBERATE ON THE BILL, WILL PERHAPS EXPLAIN THE AMOUNT OF TIME IT HAS TAKEN TO BRING MATTERS TO THIS STAGE AND COUNTER CRITICISM OF UNNECESSARY DELAY, HE SAID.
FURTHER REPRESENTATIONS MADE SUBSEQUENT TO THE BILL'S FIRST READING AND PUBLICATION LAST YEAR HAD BEEN CONSIDERED AND DISCUSSED WITH THE ADMINISTRATION, RESULTING IN ADDITIONAL AMENDMENTS OF SUBSTANCE, HE SAID.
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