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WEDNESDAY, JUNE 22, 1988
"IT IS THEREFORE HIGHLY DESIRABLE FOR THE
PRESENT BOARD OF DIRECTORS, INCLUDING THOSE APPOINTED BY THE GOVERNMENT, WHO HAVE THE INVALUABLE EXPERIENCE OF RUNNING THE FUTURES EXCHANGE SINCE LAST OCTOBER, TO RETAIN THEIR POSITIONS FOR A FEW MORE MONTHS IN ORDER TO ASSIST IN THE IMPLEMENTATION PROCESS AND MAINTAIN PUBLIC CONFIDENCE IN THE FUTURES MARKET DURING THE INTERIM PERIOD."
MR NENDICK EXPLAINED THAT THIS COULD BE ACHIEVED BY POSTPONING THE COMING ANNUAL GENERAL MEETING OF THE EXCHANGE COMPANY.
THEREFORE THE PURPOSE OF THE BILL WAS TO POSTPONE THE HOLDING OF THE THIRD ANNUAL GENERAL MEETING OF THE HONG KONG FUTURES EXCHANGE LIMITED DUE TO BE HELD ON OR BEFORE SEPTEMBER 30 THIS YEAR BY A PERIOD OF UP TO SIX MONTHS.
HE ADDED THAT THERE WAS ALSO AN ADDITIONAL PROVISION FOR THE PERIOD TO BE EXTENDED FOR A FURTHER THREE MONTHS BY RESOLUTION OF THE LEGISLATIVE COUNCIL.
THE NEED FOR THE TEMPORARY PROVISIONS SET OUT IN THE BILL AROSE FROM TWO INTER-RELATED ISSUES, MR NENDICK SAID.
FIRST, UNDER SECTION 122 OF THE COMPANIES ORDINANCE, THE ACCOUNTS AND BALANCE SHEET OF THE EXCHANGE COMPANY MUST RE LAID BEFORE AN ANNUAL GENERAL MEETING WITHIN NINE MONTHS FROM THE END OF EACH FINANCIAL YEAR." HE SAID.
"
SINCE THE FUTURES EXCHANGE'S LAST FINANCIAL YEAR END DECEMBER 31 LAST YEAR, THE NEXT ANNUAL GENERAL MEETING SHOULD BE BY THE END OF SEPTEMBER THIS YEAR.
ON
HELD
SECONDLY, MR NENDICK SAID THE ARTICLES OF ASSOCIATION OF THE EXCHANGE COMPANY PROVIDED THAT THE GOVERNMENT WAS ΤΟ APPOINT THE WHOLE OF THE EXCHANGE COMPANY'S INITIAL BOARD OF DIRECTORS AFTER THE ARTICLES HAD COME INTO EFFECT IN 1985.
BOARD WAS ΤΟ RE
IN THE SECOND YEAR, 1986, TWO-THIRDS OF THE GOVERNMENT APPOINTED, AND IN THE THIRD YEAR, 1987, ONE-THIRD.
"THESE PROVISIONS ΤΟ APPOINT GOVERNMENT DIRECTORS HOWEVER, EXPIRE WHEN THE EXCHANGE COMPANY HOLDS ITS 1988 GENERAL MEETING, HE NOTED.
"
"IN THE FOURTH YEAR, AND THEREAFTER, THERE CAN GOVERNMENT APPOINTED DIRECTOR ON THE BOARD OF THE FUTURES UNDER THE PROVISIONS OF THE ARTICLES. ALL DIRECTORS MUST BE FROM AMONGST MEMBERS OF THE EXCHANGE.
"
WILL, ANNUAL
BE
NO
EXCHANGE ELECTED
/MR NENDICK
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