25
WEDNESDAY, APRIL 12, 1989
SFC SHOULD HAVE EFFECTIVE POWER AND RESOURCES
*
(SFC) SHOULD BE MONITOR THE NECESSARY CHECKS
THE NEW SECURITIES AND FUTURES COMMISSION VESTED WITH NECESSARY POWER AND RESOURCES TO EFFECTIVELY FINANCIAL SECURITIES MARKET AND MUST BE SUBJECT TO AND BALANCES SO AS TO GUARD AGAINST FUTURE EXCESSES.
DURING
THE AND
THE HON STEPHEN CHEONG SAID THIS TODAY (WEDNESDAY) RESUMED DEBATE IN THE LEGISLATIVE COUNCIL FUTURES COMMISSION BILL 1989.
ON THE SECURITIES
START
MR CHEONG SAID THAT, RIGHT FROM THE GROUP TO STUDY THE BILL, OF WHICH HE WAS CONVENOR, REALISED THAT
THE LEGCO AD HOC HAD TAKEN ON A HEAVY RESPONSIBILITY.
THEY
AND THE NEW INSTALLED THE то THIS BILL OR ADMINISTRATION THAT THEY
WORKING CLOSELY WITH THE ADMINISTRATION COMMISSIONER FOR SECURITIES AND FUTURES, THE GROUP HAD NECESSARY CHECKS AND BALANCES THROUGH AMENDMENTS THROUGH REACHING AN UNDERSTANDING WITH THE WOULD ADDRESS POINTS OF CONCERNS THROUGH ADMINISTRATIVE MEANS.
STAGE AMENDMENTS WHICH DEALT WITH THE
MR CHEONG SAID THAT A TOTAL OF 270 COMMITTEE WERE INCORPORATED INTO THE BILL, INCLUDING 80 CHINESE TEXT.
THE FIRST OF THE MAJOR AMENDMENTS CONCERNED THE THERE SHOULD BE
AN EQUAL NUMBER OF EXECUTIVE DIRECTORS ON THE SFC BOARD,
AND AND THAT THE CHAIRMAN CASTING VOTE IN CASE OF A TIED VOTE.
AND ACCORDINGLY
PROPOSAL
THAT
NON-EXECUTIVE
SHOULD HAVE A
OPPORTUNITY
THAT SUCH AN OF RECOMMENDED THAT BOARD, IN ORDER DOMINANCE BY THE
MR CHEONG SAID THAT THE AD HỌC GROUP CONSIDERED ARRANGEMENT WOULD DEPRIVE THE NON-EXECUTIVES OF THE COUNTER-BALANCING THE EXECUTIVES, THERE SHOULD BE A MAJORITY OF NON-EXECUTIVES ON THE TO ALLEVIATE THE CONCERN IN THE MARKET EXECUTIVES.
ABOUT THE
"THE ADMINISTRATION, HOWEVER, CONSIDERS THAT THE SFC SHOULD RUNN BY FULL-TIME
BE PROFESSIONALS WHO ARE FAMILIAR SITUATIONS IF THE SFC IS TO COMMAND THE
WITH MARKET RESPECT THEREFORE FUNCTION EFFECTIVELY."
OF THE MARKET AND
to
BE NO QUESTION EXPECTED
"FURTHERMORE, THEY CONSIDER THAT THERE SHOULD OF DOMINATION BY THE EXECUTIVES SINCE THE NON-EXECUTIVES ARE TO BE PEOPLE OF INDEPENDENT MIND."
COMPOSITION
THE
WHILE NOTING THE ADMINISTRATION'S CONCERN THAT THE OF THE BOARD SHOULD REMAIN AS PROPOSED, AND TO EXECUTIVES WOULD NOT BE ABLE TO OVERDOMINATE THE BOARD, THE GROUP ENSURE THAT RECOMMENDED THAT, IN THE EVENT OF A TIED VOTE, THE CHAIRMAN SHOULD REQUIRED TO CONSULT THE FINANCIAL SECRETARY SHOULD EXERCISE HIS CASTING VOTE, MR CHEONG SAID.
HE WISH TO
HAD BE
/ALSO, HE