16
WEDNESDAY, MAY 1, 1991
"LASTLY, REPURCHASED SHARES ARE TO BE TREATED AS CANCELLED, THUS REDUCING *THE COMPANY'S ISSUED SHARE CAPITAL BUT NOT IT'S AUTHORISED SHARE CAPITAL. THIS FOLLOWS THE APPROACH IN THE UNITED KINGDOM.
SHARES PREFER
"WE HAVE CONSIDERED THE U.S. APPROACH OF RETAINING REPURCHASED
AS TREASURY STOCK WHICH MAY BE RESOLD IN FUTURE. HOWEVER,
WE
BETTER ON BALANCE THE UK APPROACH WHICH, WE BELIEVE, PROVIDES SAFEGUARD AGAINST THE POSSIBILITY OF COMPANIES TRAFFICKING IN THEIR OWN SHARES, HE SAID.
MR MACLEOD SAID THE BILL ALSO INTRODUCED MORE COMPREHENSIVE PROVISIONS ON THE GIVING OF FINANCIAL ASSISTANCE BY A COMPANY TO A THIRD PARTY FOR THE PURCHASE OF ITS SHARES.
"THE NEW PROVISIONS MAINTAIN THE GENERAL PROHIBITION ON THE GIVING OF FINANCIAL ASSISTANCE, SUBJECT TO A NUMBER OF EXCEPTIONS ESPECIALLY IN THE CASE OF UNLISTED COMPANIES," HE SAID.
FINALLY, HE SAID, THE BILL INTRODUCED A DEFINITION OF DISTRIBUTABLE PROFITS, NOTING THAT THERE WAS AT PRESENT NO STATUTORY PROVISJON
TO ITS GOVERNING THE DISTRIBUTION OF PROFITS BY A COMPANY SHAREHOLDERS, ALTHOUGH THERE WERE ACCEPTED PRINCIPLES AND PRACTICES GOVERNED BY COMMON LAW.
"THE NEW PROVISIONS SERVE IN EFFECT TO CODIFY EXISTING GOOD ACCOUNTING PRACTICE," HE SAID.
"A STATUTORY DEFINITION IS DESIRABLE IN ITSELF AND WILL STRENGTHEN THE POSITION OF CREDITORS SINCE SHARE REPURCHASES MAY ONLY BE MADE OUT OF DISTRIBUTABLE PROFITS, HE ADDED.
DEBATE ON THE BILL WAS ADJOURNED.
HOTEL LICENSING SCHEME EXPLAINED
* *
THE PROPOSED HOTEL LICENSING SCHEME AIMS AT REGULATING ESTABLISHMENTS WHICH OFFER TEMPORARY SLEEPING ACCOMMODATION
THEIR CUSTOMERS, THE SECRETARY FOR HOME AFFAIRS, THE HON PETER TSAO, THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
TO
TOLD
BILL
ΤΟ
SPEAKING AT THE RESUMED DEBATE ON THE HOTEL ACCOMMODATION
ADMINISTRATION 1990, MR TSAO SAID IT WAS NOT THE INTENTION OF THE CONTROL PREMISES WHICH WERE LET OUT ON MONTHLY BASIS OR AS LEASED TENANCIES.
HE NOTED THAT AS THE FIRST PHASE OF THE LICENSING SCHEME COVER HOTELS AND GUESTHOUSES, IT HAD OBVIOUSLY AROUSED CONSIDERABLE
INTEREST FROM THE INDUSTRY.
WOULD
/AND ALTHOUGH