FRIDAY, MARCH 30, 1990
SECURITIES (DISCLOSURE OF INTERESTS) (AMENDMENT) BILL GAZETTED
OF
AMENDMENTS TO THE NOTIFICATION PROCEDURES IN RESPECT INTERESTS IN SHARES IN LISTED COMPANIES ARE PROPOSED IN THE SECURITIES (DISCLOSURE OF INTERESTS) (AMENDMENT) BILL GAZETTED TODAY (FRIDAY).
EXPLAINING THE NEED FOR THE AMENDMENTS, A GOVERNMENT SPOKESMAN SAID THE EXISTING NOTIFICATION PROCEDURES LAID DOWN IN THE SECURITIES (DISCLOSURE OF INTERESTS) ORDINANCE ENACTED IN JULY 1988 WERE UNSATISFACTORY.
"THIS ORDINANCE IMPOSES CERTAIN DISCLOSURE REQUIREMENTS IN RELATION TO THE INTERESTS IN SHARES OF SUBSTANTIAL SHAREHOLDERS AND THE INTERESTS IN SHARES AND DEBENTURES OF DIRECTORS AND CHIEF
EXECUTIVES.
AN INTEREST IN THE AN OBLIGATION TO REPORT
"A PERSON WHO ACQUIRES OR CEASES TO HAVE SHARE CAPITAL OF A LISTED COMPANY IS UNDER THAT INFORMATION TO THE COMPANY.
"SUCH NOTIFICATION MUST BE MADE WITHIN FIVE DAYS OF THE OBLIGATION ARISING. THE COMPANY IN TURN IS GIVEN UNTIL THE CONCLUSION OF THE FOLLOWING DAY TO REPORT THE INFORMATION TO THE STOCK EXCHANGE AND THE SECURITIES AND FUTURES COMMISSION (SFC).
"THE STOCK EXCHANGE IS THEN REQUIRED TO PUBLISH THE INFORMATION," HE SAID.
THE SPOKESMAN SAID THE EXISTING NOTIFICATION PROCEDURES DO NOT ENSURE THE PROMPT RELEASE OF PRICE SENSITIVE INFORMATION TO THE PUBLIC AND CREATE AN OPPORTUNITY FOR INSIDER DEALING BY THE OFFICERS OF THE LISTED COMPANY.
"THE LISTED COMPANY CAN POTENTIALLY BE IN POSSESSION OF PRICE SENSITIVE INFORMATION FOR UP TO TWO DAYS BEFORE IT IS PASSED ON TO THE STOCK EXCHANGE," HE SAID.
"TO RECTIFY THIS UNSATISFACTORY SITUATION, THE BILL PROPOSES THAT WHEREVER A DUTY OF DISCLOSURE ARISES, THE PERSON CONCERNED SHOULD BE REQUIRED TO NOTIFY BOTH THE LISTED COMPANY AND THE STOCK EXCHANGE WITHIN FIVE DAYS, WITH THE STOCK EXCHANGE RECEIVING THE INFORMATION AHEAD OF THE LISTED COMPANY.
"THE SFC WILL ARRANGE WITH THE STOCK EXCHANGE ΤΟ HAVE ACCESS TO THE INFORMATION, HE SAID.
TT
WHILE FAILURE TO COMPLY WITH THE NOTIFICATION REQUIREMENTS WILL BE AN OFFENCE, THE SPOKESMAN POINTED OUT HOWEVER THAT TO AVOID POSSIBLE INJUSTICE, IT WILL BE A DEFENCE FOR A PERSON TO SHOW THAT HE HAD TAKEN ALL REASONABLY PRACTICABLE STEPS ΤΟ NOTIFY THE STOCK EXCHANGE BEFORE THE LISTED COMPANY.
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