WEDNESDAY, APRIL 12, 1989
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ALSO, HE SAID ADMINISTRATIVE ARRANGEMENTS WOULD BE MADE ΤΟ REQUIRE THE SFC TO RECORD IN ITS ANNUAL REPORT ALL INSTANCES IN WHICH THE CHAIRMAN HAS EXERCISED HIS CASTING VOTE.
MR CHEONG ADDED THAT. AS A MEANS TO ENSURING THAT THE NON-EXECUTIVE DIRECTORS COULD RAISE ANY ISSUE FOR DISCUSSION BY THE BOARD, THE GROUP HAD RECOMMENDED THAT THERE SHOULD BE A NEW PROVISION FOR A REQUISITION FROM NOT LESS THAN TWO DIRECTORS TO TRIGGER A BOARD MEETING.
SIMILARLY, ANY THREE MEMBERS OF THE SFC ADVISORY COMMITTEE WERE REQUIRED TO TRIGGER A MEETING OF THE ADVISORY COMMITTEE, MR CHEONG SAID.
ALSO THE ADVISORY COMMITTEE SHOULD MEET AT LEAST ONCE EVERY QUARTER IN ORDER THAT THERE WOULD BE NO MEANS FOR DELIBERATELY PUTTING OFF MEETINGS OF THE COMMITTEE.
THE SECOND MAJOR AMENDMENT WAS IN RESPECT OF CLAUSE 10 OF THE BILL, WHICH STIPULATED THAT THE GOVERNOR MIGHT GIVE DIRECTIONS TO THE SFC IN POLICY MATTERS ONLY.
ACCORDING TO MR CHEONG, HIS GROUP CONSIDERED THAT SUCH A PROVISION WAS UNNECESSARILY RESTRICTIVE AND HAD THEREFORE PROPOSED AN AMENDMENT TO ENABLE THE GOVERNOR TO GIVE DIRECTIONS TO THE COMMISSION IN A GENERAL SENSE.
ON THE BUDGET OF THE SFC, MR CHEONG NOTED THAT THERE HAD BEEN CONSIDERABLE CONCERN ABOUT THE MAGNITUDE OF THE BURDEN ON THE MARKET. HIS GROUP HAD CONSIDERED THAT THE LEGISLATURE SHOULD HAVE THE OPPORTUNITY OF LOOKING AT THE BUDGET OF THE SFC IN DRAFT FORM AS A SAFEGUARD AGAINST EXCESSIVE SPENDING.
HE SAID THAT THE ADMINISTRATION HAD, APART FROM AGREEING THAT THE SFC DRAFT BUDGET SHOULD BE SUBMITTED ΤΟ THE FINANCE COMMITTEE BEFORE IT WENT TO THE GOVERNOR FOR APPROVAL EVERY YEAR, MADE A PROVISION FOR THE TABLING OF THE SFC BUDGET IN LEGCO AFTER IT WAS APPROVED BY THE GOVERNOR.
**NEVERTHELESS, THE PORTION OF THE GOVERNMENT'S CONTRIBUTION TO FUND THE COMMISSION WILL REMAIN A MATTER FOR THE CONSIDERATION OF THE FINANCE COMMITTEE OF THE ANNUAL APPROPRIATION EXERCISE, SAID MR CHEONG.
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HE ALSO SAID THAT SINCE THE AGREED FORMULA FOR FUNDING THE SFC FROM THE MARKET WOULD DEPEND ON MARKET SITUATIONS, THE ADMINISTRATION HAD AGREED THAT THE SFC FUNDING SITUATION WOULD BE THE SUBJECT OF REGULAR REVIEW BY THE AUTHORITIES CONCERNED.
NOTING THAT CONCERN HAD ALSO BEEN EXPRESSED ABOUT THE COMPOSITION OF THE PROPOSED APPEALS PANEL AND THE LACK OF PROVISIONS FOR APPEALS ON THE DETERMINATION OF A TRIBUNAL, MR CHEONG SAID THAT THE AD HOC GROUP SHARED THE ADMINISTRATION'S VIEW THAT SINCE CASES INVOLVED WERE FREQUENTLY HIGHLY TECHNICAL IN NATURE, IT WOULD BE DESIRABLE TO HAVE SOMEBODY WITH MARKET KNOWLEDGE IN THE TRIBUNAL.
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