WEDNESDAY, JUNE 8, 1988
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SECURITIES DISCLOSURE BILL HAS FIVE MAIN FEATURES
THE SECURITIES (DISCLOSURE OF INTERESTS) BILL 1988 FOLLOWS CLOSELY THE RELEVANT PROVISIONS OF THE UNITED KINGDOM COMPANIES ACT, THE ACTING FINANCIAL SECRETARY, THE HON DAVID NENDICK, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
THE BILL HAD FIVE MAIN FEATURES, MR NENDICK SAID IN MOVING ITS SECOND READING.
"FIRST, IT FORCES DISCLOSURE OF SHAREHOLDINGS OF 10 PER CENT OR MORE WITHIN FIVE DAYS OF THE DUTY ARISING, HE SAID.
"ONCE A SUBSTANTIAL SHAREHOLDING HAS BEEN NOTIFIED, ANY CHANGE OF ONE PER CENT OR MORE MUST ALSO BE NOTIFIED."
HE EXPLAINED THE AIM WAS TO LOOK THROUGH CORPORATE INTERESTS TO GET AT THE REALITY OF CONTROLLING SHAREHOLDERS.
FAILURE TO COMPLY WITH THE DISCLOSURE ATTRACT HEAVY PENALTIES UPON CONVICTION.
OBLIGATIONS WOULD
ON THE SECOND FEATURE OF THE BILL. MR NENDICK SAID IT GAVE LISTED COMPANIES THE RIGHT ΤΟ REQUIRE A SHAREHOLDER TO PROVIDE INFORMATION ABOUT HIS HOLDING.
'IF A PERSON FAILS WITHOUT GOOD REASON TO GIVE THE NECESSARY INFORMATION THE COMPANY MAY APPLY TO THE HIGH COURT FOR RESTRICTIONS TO BE PLACED UPON THE SHARES IN QUESTION,
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HE SAID.
OF
"SIMILARLY, A LISTED COMPANY MAY BE REQUIRED BY 10 PER CENT ITS SHAREHOLDERS, UPON DEMONSTRATION OF GOOD CAUSE, ΤΟ INVESTIGATE INTO THE OWNERSHIP OF ITS SHARES.
THIRDLY, MR NENDICK SAID THE BILL FORCED THE DIRECTORS AND THE CHIEF EXECUTIVE OF A LISTED COMPANY TO DISCLOSE THEIR SHAREHOLDINGS IN THE COMPANY AND IN ANY ASSOCIATED COMPANY AND ANY DEALINGS THEY MIGHT HAVE IN THE RELEVANT SHARES.
"FOURTH, IT ENABLES THE FINANCIAL SECRETARY TO APPOINT INSPECTORS TO INVESTIGATE THE OWNERSHIP OF A LISTED COMPANY OR ANY BREACH OF THE DUTY OF DISCLOSURE BY DIRECTORS AND CHIEF EXECUTIVES," HE CONTINUED.
"THE COST OF ANY SUCH INVESTIGATION WILL BE RECOVERABLE IN CERTAIN CIRCUMSTANCES FROM THE PARTIES INVOLVED."
WHERE AN INVESTIGATION ENCOUNTERED DIFFICULTIES IN FINDING OUT RELEVANT FACTS, MR NENDICK SAID THE FINANCIAL SECRETARY MIGHT IMPOSE RESTRICTIONS ON THE SHARES CONCERNED.
FINALLY, HE SAID THE BILL ALSO ENABLED THE COURTS OR, IN CERTAIN CASES THE FINANCIAL SECRETARY TO PLACE
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RESTRICTIONS ON THE TRANSFER OR DISPOSAL OF SHARES.
"WHERE A