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WEDNESDAY, FEBRUARY 10, 1988
COMPANIES LAW AMENDMENTS BASED ON COMMON SENSE
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THE AMENDMENTS INTRODUCED TO THE COMPANIES ORDINANCE ARE BASED ON COMMON SENSE AND CAN BE SEEN AS A PRACTICAL SOLUTION TO A MATTER THAT WAS OF CONCERN TO HONG KONG'S FINANCIAL INSTITUTIONS.
DR THE HON HELMUT SOHMEN SAID THIS TODAY (WEDNESDAY} WHEN SUPPORTING THE COMPANIES (AMENDMENT] BILL 1988 IN THE LEGISLATIVE
COUNCIL MEETING.
HE EXPLAINED THAT THE BI11. EXEMPTED AUTHORISED FINANCIAL INSTITUTIONS AND THEIR HOLDING COMPANIES FROM THE REQUIREMENT TO DISCLOSE DETAILS OF LOANS TO EVERY DIRECTOR AND OFFICER IN THEIR ANNUAL REPORTS AND ACCOUNTS, EXCEPT FOR LOANS IN EXCESS OF $10 MILLION MADE ON CONCESSIONARY TERMS.
"WHAT WILL. INSTEAD BE REQUIRED ARE ANNUAL ACCOUNTS GIVING AGGREGATE FIGURES ONLY. "
ACCORDING TO DR SOHMEN, THIS DID NOT MEAN THAT LOANS ΤΟ DIRECTORS AND OFFICERS WHICH WERE OF INTEREST
TO SHAREHOLDERS AND DEPOSITORS ALIKE, WOULD BE HIDDEN FROM THEM.
"THE BILL FOR THIS REASON REQUIRES AUTHORISED FINANCIAL INSTITUTIONS TO KEEP A REGISTER OF DETAILS OF ALL LOANS TO DIRECTORS AND OFFICERS TO BE AVAILABLE FOR INSPECTION, BY THE PERIOD OF 14 DAYS BEFORE AND SEVEN DAYS AFTER THE MEETING, HE SAID.
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PUBLIC, FOR ANNUAL GENERAL
HE ALSO SAID THE AMENDMENTS TODAY WERE THE RESULT OF MUCH CONSULTATION BY THE GOVERNMENT WITH MANY INTERESTED ORGANISATIONS INCLUDING THE HONG KONG GENERAL CHAMBER OF COMMERCE, THE LAW SOCIETY, THE HONG KONG SOCIETY OF ACCOUNTANTS, THE INSTITUTE OF CHARTERED SECRETARIES AND ADMINISTRATORS.
MORE IMPORTANTLY, THEY WERE THE RESULT OF CONSULTATION WITH THE HONG KONG DEPOSIT TAKING COMPANIES ASSOCIATION AND THE HONG KONG ASSOCIATION OF BANKS.
HE SAID THE HONG KONG SOCIETY OF ACCOUNTANTS HAD MADE DETAILED REPRESENTATIONS WHICH HAD BEEN NOTED AND TO SOME EXTENT WERE INCORPORATED IN THE FINAL REVISION.
THE HONG KONG ASSOCIATION OF BANKS, WHICH HAD BEEN PRESSING FOR AMENDMENTS ΤΟ SECTION 1618 OF THE EXISTING ORDINANCE, HAD REVIEWED THESE PROPOSED AMENDMENTS AND ALL OTHER REPRESENTATIONS, AND WELCOMED AND ENDORSED THE AMENDMENTS TO THE BILL, HE SAID.
DR SOHMEN ADDED THAT THE VIEWS HE PRESENTED ON THE BILL WOULD HAVE BEEN MADE BY THE HON DAVID
K.
P. LI RAD HE BEEN ABLE TO BE PRESENT IN THE COUNCIL TODAY. NEVERTHELESS, HE FULLY AGREED WITH THESE VIEWS.
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