FRIDAY, AUGUST 9, 1985
DISCRETION ON DISCLOSURE GIVEN IN HANG LUNG BANK CASE
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THE EXECUTIVE COUNCIL HAS APPROVED AMENDMENTS TO THE HANG LUNG BANK (COMPENSATION OF FORMER SHAREHOLDERS) REGULATIONS TO REQUIRE THE FINANCIAL SECRETARY INCORPORATED TO PUBLISH THE DECISION OF THE COMPENSATION TRIBUNAL AND TO GIVE IT DISCRETION TO DISCLOSE MATTERS RELATED TO THE DECISION.
UNDER THE PREVIOUS REGULATIONS, ANY MATTER COMING BEFORE THE TRIBUNAL COULD NOT BE PUBLISHED OR DISCLOSED BY ANY PERSON.
A GOVERNMENT SPOKESMAN EXPLAINED THAT THE SECRECY PROVISIONS WERE INCLUDED IN THE REGULATIONS BECAUSE THERE WAS A NEED TO SAFEGUARD THE CONFIDENTIAL ASPECTS OF THE OPERATION OF THE FINANCIAL SYSTEM.
HOWEVER, IN VIEW OF THE TAKEOVER OF THE OVERSEAS TRUST BANK, IT IS CONSIDERED THAT THE PUBLIC AND PROSPECTIVE CLAIMANTS IN THE CASE OF THE OTB SHOULD AT LEAST BE TOLD OF THE DECISION OF THE HANG LUNG BANK COMPENSATION TRIBUNAL, THE SPOKESMAN SAID.
1984 THE COMPENSATION TRIBUNAL WAS APPOINTED ON OCTOBER 30 AND COMPRISED THE HON MR JUSTICE MANTELL, MRS BARBARA THOMÁS, A MERCHANT BANKER AND MR MICHAEL KAN, A FORMER CHIEF EXECUTIVE OF A LOCALLY INCORPORATED BANK.
THE FUNCTION OF THE TRIBUNAL WAS TO DETERMINE THE AMOUNT OF COMPENSATION, IF ANY, TO WHICH ANY FORMER SHAREHOLDER OF THE HANG LUNG BANK IS ENTITLED, BASED ON THE VALUE OF A SINGLE SHARE AS AT COMMENCEMENT OF THE HANG LUNG BANK (ACQUISITION) ORDINANCE THAT IS SEPTEMBER 28, 1983, MULTIPLIED BY THE NUMBER OF SHARES HELD BY THAT SHAREHOLDER IMMEDIATELY BEFORE THAT DATE TOGETHER WITH INTEREST FROM THE DATE OF COMMENCEMENT TO THE DATE OF PAYMENT.
IN THE COURSE OF REACHING ITS DECISION, THE TRIBUNAL CONDUCTED SIX HEARINGS AND HEARD REPRESENTATIONS BY COUNSEL FOR THE COLONIAL TREASURER INCORPORATED (SINCE RETITLED FINANCIAL SECRETARY INCORPORATED) AND THOSE FORMER SHAREHOLDERS OR THEIR LEGAL REPRESENTATIVES WHO HAD ASKED TO BE HEARD.
THE UNANIMOUS DECISION OF THE TRIBUNAL WAS THAT AT THE MATERIAL DATE A SINGLE SHARE HAD NO VALUE AND, THEREFORE, THAT NO COMPENSATION WAS PAYABLE TO ANY FORMER SHAREHOLDER.
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