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WEDNESDAY, JULY 24, 1985
TIMELY FOR UNIFIED EXCHANGE TO HAVE CORPORATE MEMBERSHIP
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IN VIEW OF THE IMPORTANT ROLE PLAYED BY CORPORATIONS AND BANKING INSTITUTIONS IN STOCK MARKETS, AND THE GROWING MATURITY OF THE SECURITIES INDUSTRY IN HONG KONG, IT WAS CONSIDERED DESIRABLE AND TIMELY TO ALLOW THE UNIFIED EXCHANGE TO INTRODUCE CORPORATE MEMBERSHIP.
STATING THIS TODAY (WEDNESDAY) WHEN MOVING THE SECOND READING OF THE STOCK EXCHANGES UNIFICATION (AMENDMENT) BILL 1985, THE SECRETARY FOR ECONOMIC SERVICES, THE HON GERRY HIGGINSON, SAID THE PRINCIPAL OBJECTIVE OF THE BILL WAS TO PROVIDE NEW MEMBERSHIP CRITERIA FOR THE UNIFIED STOCK EXCHANGE.
HE TOLD THE LEGISLATIVE COUNCIL THAT AT PRESENT ONLY INDIVIDUALS WERE ELIGIBLE FOR MEMBERSHIP OF THE UNIFIED EXCHANGE.
+THE BILL ENABLES LOCALLY INCORPORATED BODY CORPORATES INCLUDING SUBSIDIARIES OF BANKS AND DEPOSIT-TAKING COMPANIES TO BECOME ELIGIBLE TO APPLY TO THE UNIFIED EXCHANGE FOR CORPORATE MEMBERSHIP.
+APPLICATIONS WILL BE CONSIDERED IN ACCORDANCE WITH THE CONSTITUTION AND RULES OF THE EXCHANGE COMPANY BUT THE PREREQUISITES ARE THAT THE CORPORATIONS MUST BE OF GOOD FINANCIAL STANDING AND INTEGRITY AND ALREADY BE REGISTERED AS DEALERS UNDER THE SECURITIES ORDINANCE,+ MR HIGGINSON SAID.
HE POINTED OUT THAT THE BILL ALSO REMOVED THE CURRENT DISQUALIFICATIONS AGAINST DIRECTORS AND EMPLOYEES OF BANK AND DEPOSIT-TAKING COMPANIES, SOLICITORS AND PROFESSIONAL ACCOUNTANTS FROM BECOMING MEMBERS OF THE UNIFIED EXCHANGE.
IT ALSO PROVIDED FOR THE FORMATION OF PARTNERSHIPS, MR HIGGINSON SAID, NOTING THAT THE NEW MEMBERSHIP PROVISIONS WOULD MEET THE ASPIRATIONS OF THE FINANCIAL SECTOR AND FURTHER THE DEVELOPMENT OF THE SECURITIES INDUSTRY.
HE ADDED THAT THESE PROVISIONS WOULD AT THE SAME TIME SERVE THE INTERESTS OF BOTH THE BROKING AND INVESTING COMMUNITIES.
AMONG OTHER PROVISIONS OF THE BILL WAS THE IMPOSITION OF A DUTY ON THE EXCHANGE COMPANY TO ENSURE ITS MEMBERS' COMPLIANCE WITH CERTAIN MINIMUM FINANCIAL REQUIREMENTS SPECIFIED IN SECTION 65B OF THE SECURITIES ORDINANCE.
THE PURPOSE OF THIS PARTICULAR PROVISION WAS TO ENHANCE THE EXCHANGE COMPANY'S ROLE IN MONITORING THE ACTIVITIES OF ITS MEMBERS, HE SAID.
+THE PROPOSALS REFLECTED IN THE BILL HAVE BEEN THE SUBJECT OF LENGTHY AND DETAILED DISCUSSION BY THE SECURITIES COMMISSION AND BY THE COMMITTEE OF THE UNIFIED EXCHANGE AND HAVE THE IR SUPPORT,+ HE SAID.
DEBATE ON THE BILL WAS ADJOURNED.