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WEDNESDAY, JUNE 22, 1988
"THE PRESENT PROJECT, THOUGH A VERY LIMITED ONE, HAS BEEN WORTHWHILE AND HAS SUCCEEDED IN SETTING UP A NETWORK OF CONTACTS PERSONALLY KNOWN TO EACH OTHER AND BETWEEN WHOM INTELLIGENCE CAN PASSED WITH AND IN CONFIDENCE.
"
BE
THE PROJECT IS EXPENSIVE TO RUN, WITH STAFF COSTS AMOUNTING ΤΟ US$60,000 AND COMMUNICATIONS COST TO AT LEAST US$10,000 A YEAR.
INCLUSION OF CODES ON FIDUCIARY DUTIES RECOMMENDED
冀
A SHORT STATUTORY CODIFICATION OF THE GENERAL FIDUCIARY DUTIES OF COMPANY DIRECTORS SHOULD BE INCLUDED IN THE COMPANIES ORDINANCE, THE STANDING COMMITTEE ON COMPANY LAW REFORM RECOMMENDS IN ITS FOURTH REPORT PUBLISHED TODAY (WEDNESDAY).
THE STANDING COMMITTEK FELT THAT THE CODIFICATION WOULD PROVIDE A READY REFERENCE FOR ALL DIRECTORS, ESPECIALLY FOR THOSE NEW TO THEIR POSTS AND FERHAPS NOT FAMILIAR WITH THE BASIC PRINCIPLES.
HIGHLIGHTING OTHER MAJOR RECOMMENDATIONS IN THIS REPORT, A GOVERNMENT SPOKESMAN SAID THE STANDING COMMITTEE ALSO LOOKED INTO AN 1SSUR CONCERNING THE REGISTRATION OF PROSPECTUSES.
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SECTION 38D(5) OF THE COMPANIES ORDINANCE PROVIDES THAT THE REGISTRAR OF COMPANIES MAY REFUSE TO REGISTER A PROSPECTUS DELIVERED TO HIM FOR REGISTRATION IF IT DOES NOT COMPLY IN ALL RESPECTS WITH THE COMPANIES ORDINANCE.
"THE REGISTRAR GENERAL, IN CARRYING OUT HIS STATUTORY DUTIES, HAS BECOME INCREASINGLY CONCERNED ABOUT THE NUMBER OF PROSPECTUSES WHICH CONTAIN VAGUE STATEMENTS OF GENERAL INTENTION BY THE DIRECTORS, HE SAID.
"
THE SPOKESMAN POINTED OUT THAT THE REGISTRAR GENERAL* 'S ATTEMPTS TO PERSUADE COMPANIES' REPRESENTATIVES TO INTRODUCE A GREATER DEGREE OF PRECISION IN PROSPECTUSES HAD MET WITH ONLY VARYING SUCCESS.
"TO STRENGTHEN THE REGISTRAR GENERAL'S HAND, THE STANDING COMMITTEE RECOMMENDS THAT SECTION 38D(5) BE AMENDED TO MAKE
IT CLEAR THAT THE REGISTRAR MAY REFUSE TO REGISTER WHERE 'IN HIS OPINION' A PROSPECTUS DOES NOT FULLY COMPLY WITH THE ORDINANCE OR CONTAINS MISLEADING INFORMATION, HE SAID.
ANOTHER RECOMMENDATION INVOLVES THE POWER OF SHAREHOLDERS OF CERTAIN PRIVATE COMPANIES TO WAIVE COMPLIANCE WITH REQUIREMENTS AS TO ACCOUNTS.
"THE STANDING