TUESDAY, SEPTEMBER 24, 1989
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NEW SHARE DISCLOSURE LEGISLATION PLANNED
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THE STANDING COMMITTEE ON COMPANY LAW REFORM IS STRONGLY INCLINED TOWARDS INTRODUCING LEGISLATION REQUIRING DISCLOSURE OF BENEFICIAL OWNERSHIP OF SHAREHOLDERS AND OF DEALINGS IN SHARES ON A SIGNIFICANT SCALE.
THE STANDING COMMITTEE THEREFORE PLANS TO RECOMMEND PROVISIONS ALONG THE LINES ADOPTED IN THE UNITED KINGDOM, BUT LIMITED IN HONG KONG TO PUBLIC LISTED COMPANIES.
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HOWEVER, BEFORE THIS IS DONE, THE VIEWS OF INTERESTED ASSOCIATIONS AND MEMBERS OF THE PUBLIC ARE BEING SOUGHT.
HONG KONG IS ONE OF THE FEW FINANCIALLY SOPHISTICATED JURISDICTIONS WHICH STILL HAVE NO LEGISLATION ON THIS SUBJECT. COUNTRIES WHICH DO HAVE LEGISLATION INCLUDE THE UNITED KINGDOM, UNITED STATES, CANADA, AUSTRALIA AND SINGAPORE.
A COMMITTEE SPOKESMAN SAID TODAY: +THERE HAS BEEN A GOOD DEAL OF CRITICISM IN THE PAST OF THE LACK OF SUCH LEGISLATION IN HONG KONG, AND THE CRITICISM HAS BECOME MORE INTENSE RECENTLY.+
THE COMMITTEE EXPLAINS ITS VIEWS IN AN INTERIM REPORT
PUBLISHED TODAY.
THE REPORT INCLUDES AN OUTLINE OF THE SUGGESTED LEGISLATION WHICH, IN ESSENCE, WILL REQUIRE A DIRECTOR OF A PUBLIC LISTED COMPANY TO GIVE NOTICE TO THE COMPANY OF HIS INTERESTS IN ANY SHARES IN OR DEBENTURES OF THE COMPANY, OR ITS HOLDING OR ANY ASSOCIATED OR SUBSIDIARY COMPANY, AND OF ANY CHANGE IN THOSE INTERESTS. THE OBLIGATIONS WILL EXTEND TO SIMILAR INTERESTS HELD BY THE IMMEDIATE FAMILY OF THE DIRECTOR.
THE INFORMATION DISCLOSED WILL BE AVAILABLE FOR PUBLIC INSPECTION THROUGH A REGISTER KEPT BY THE COMPANY WHICH WILL, IN ADDITION, PASS ON THE INFORMATION TO THE STOCK EXCHANGE.
SIMILAR REQUIREMENTS WILL BE IMPOSED ON SUBSTANTIAL SHAREHOLDERS THAT IS TO SAY PARTIES HAVING AN INTEREST IN A SPECIFIED PERCENTAGE OR MORE OF THE VOTING SHARES OF A COMPANY. THE EXACT PERCENTAGE HAS YET TO BE DECIDED, BUT FIGURES IN OTHER JURISDICTIONS VARY BETWEEN FIVE PER CENT AND TEN PER CENT.
THE REQUIREMENT WILL APPLY EQUALLY TO THE GROUP INTERESTS OF PERSONS ACTING TOGETHER, COMMONLY KNOWN AS +CONCERT PARTIES+, WHO WILL IN ADDITION HAVE TO KEEP EACH OTHER INFORMED OF THEIR DEALINGS IN THE PARTICULAR SHARES.
/PROVISION WILL .......