WEDNESDAY, JULI 13, 1988
19.
ON DISCRETIONARY TRUSTS, MR JACOBS EXPLAINED UNDER CLAUSE 14(1) OF THE BILL, A DISCRETIONARY INTEREST WAS NOT CAUGHT BY THE DISCLOSURE REQUIREMENTS.
HE SAID THE PROVISION FOLLOWED THE LEGISLATION KINGDOM, WHERE IT HAD NOT CAUSED ANY PROBLEMS.
IN THE UNITED
"IT WOULD BE UNFAIR TO PENALISE GENUINE DISCRETIONARY AT THIS STAGE WITHOUT ANY EVIDENCE OF ABUSE, MR JACOBS SAID.
TRUSTS
"WE WILL CLOSELY MONITOR THE SITUATION AND NECESSARY AMENDMENTS WILL BE INTRODUCED SHOULD THERE BE WIDESPREAD ABUSE IN FUTURE.
H
AS THEY DID NOT FORM WARRANTS WERE NOT
REFERRING TO WARRANTS, MR JACOBS SAID PART OF THE ISSUED VOTING SHARES OF THE COMPANY, COVERED BY THE DISCLOSURE REQUIREMENT.
HE POINTED OUT THE PURPOSE OF THE DISCLOSURE REQUIREMENT WAS TO REVEAL ACTUAL NOT POTENTIAL VOTING POWER.
"THIS AGAIN FOLLOWS THE UNITED KINGDOM LEGISLATION, WHERE IT HAS NOT CAUSED ANY PROBLEMS."
FURTHERMORE, MR JACOBS ADDED, TO EXTEND THE SCOPE OF THE BILL TO APPLY TO WARRANTS WOULD CAUSE SERIOUS PRACTICAL DIFFICULTIES.
AND
"IT WOULD REQUIRE MAJOR CHANGES TO THE COMPANIES ORDINANCE EXTENSIVE RE-DRAFTING OF THE BILL; THIS WOULD INEVITABLY DELAY ITS PASSAGE, HE SAID.
11
MR JACOBS SAID INTERESTS HELD AS SECURITY BY AUTHORISED FINANCIAL INSTITUTIONS IN THE ORDINARY COURSE OF THEIR BUSINESS WERE EXEMPT FROM THE DISCLOSURE REQUIREMENTS.
"THE BANKING SECTOR HAS EXPRESSED CONCERN THAT IT MAY NOT BE SUFFICIENTLY CLEAR IN THE BILL THAT AN EXEMPT SECURITY INTEREST
INCLUDES SHARES HELD BY BANKS BY WAY OF A SECURED SYNDICATED LOAN, "
HE NOTED.
"THE PRESENT PROVISION FOLLOWS THE UK LEGISLATION WHICH HAS NOT CAUSED PROBLEMS TO THE UK BANKING COMMUNITY, AND I THINK THAT FURTHER CLARIFICATION IN OUR LEGISLATION IS UNNECESSARY.
MR JACOBS ASSURED THE BANKING COMMUNITY THAT A SECURED SYNDICATED LOAN WOULD BE EXEMPT IF IT FELL WITHIN THE ORDINARY COURSE OF A BANK'S BUSINESS.
OUT
ON THE RELEVANT PERIOD FOR NOTIFICATION, MR JACOBS POINTED THAT THE MAIN DISCLOSURE OBLIGATIONS UNDER THE BILL MUST BE PERFORMED WITHIN FIVE DAYS.
"BY VIRTUE OF SECTION 71 OF THE INTERPRETATION AND GENERAL CLAUSES ORDINANCE, THIS MEANS FIVE BUSINESS DAYS," HE SAID.
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