N
WEDNESDAY, JANUARY 23, 1991
HOWEVER,
HAVE
"THERE ARE,
SPECIFIC PROVISIONS IN THE COMPANIES ORDINANCE WHICH DO APPLY TO OVERSEAS-INCORPORATED COMPANIES WHICH A PLACE OF BUSINESS IN HONG KONG, HE SAID.
AS A GENERAL PRINCIPLE, THESE OVERSEAS INCORPORATED COMPANIES CONTINUED TO BE SUBJECT TO HONG KONG SECURITIES REGULATION, THE PRIMARY PURPOSE OF WHICH WAS TO PROTECT THE INTEREST OF INVESTORS IN THE HONG RONG MARKET, HE ADDED.
BY THE
SIR PIERS SAID SO LONG AS REDOMICILED COMPANIES ABIDED SAME RULES AS COMPANIES INCORPORATED IN HONG KONG IN TERMS OF THEIR OBLIGATIONS TO INVESTORS, THEY SHOULD BE FREE TO OPERATE IN THE WAY THAT SUITED THEIR CORPORATE OBJECTIVES BEST,
"THUS, WHILE THE ADMINISTRATION DOES NOT CONSIDER IT NECESSARY OR APPROPRIATE TO INTERFERE IN THE COMMERCIAL DECISIONS OF COMPANIES, IT WILL ENDEAVOUR TO ENSURE THAT THERE ARE NO SIGNIFICANT GAPS IN THE INVESTOR PROTECTION FRAMEWORK FOR SHAREHOLDERS IN SUCH COMPANIES AS A RESULT OF THEIR CHANGE OF DOMICILE, HE ADDED.
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BILL TO RELIEVE RATE PAYMENTS INTRODUCED
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THE RATING (AMENDMENT) BILL 1991 SEEKS TO INTRODUCE A RATB RELIEF SCHEME IN ORDER TO CUSHION THE IMPACT OF SUBSTANTIAL INCREASES IN RATES PAYMENTS IN ANY GIVEN YEAR, THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
MOVING THE SECOND READING OF THE BILL, SIR PIERS SAID ONE EFFECT OF THE GENERAL REVALUATION WHICH WAS DUE TO TAKE EFFECT FROM APRIL 1 THIS YEAR WAS THAT SOME PROPERTIES WOULD EXPERIENCE GREATER INCREASES IN RATEABLE VALUES THAN OTHERS.
HE SAID THIS WAS BECAUSE RENTAL VALUES, ON WHICH THE RATEABLE VALUES WERE BASED, WOULD INCREASE BY DIFFERENT AMOUNTS DEPENDING UPON THE CLASS OF THE PROPERTY CONCERNED AND ITS LOCATION.
SIR PIERS SAID ALTHOUGH THE RATES PAYABLE AFTER THE REVALUATION MIGHT NOT NECESSARILY INCREASE TO THE SAME EXTENT AS THE GENERAL INCREASE IN RATEABLE VALUES BECAUSE OF THE ADJUSTMENTS TO THE PERCENTAGE RATES CHARGE, THOSE PROPERTIES EXPERIENCING INCREASES ABOVE THE OVERALL AVERAGE MIGHT STILL BR FACED WITH SUBSTANTIAL INCREASES IN RATES PAYMENTS.
"TO DEAL WITH THIS SITUATION, THE BILL PROPOSES ΤΟ CREATE A MECHANISM IN THE RATING ORDINANCE BY WHICH A RATE RELIEF SCHEME MAY BE INTRODUCED IN ANY FINANCIAL YEAR. THE FINANCIAL SECRETARY SAID.
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WHEN CIRCUMSTANCES WERE SUCH THAT A RATE RELIEF SCHEME WAS DEEMED NECESSARY, THE NEW SECTION 19(1) COULD BE INVOKED, HE SAID.
/"THIS SECTION