WEDNESDAY, APRIL 22, 1992

THE STANDING

'FOLLOWING A PROPOSAL BY THE REGISTRAR GENERAL, COMMITTEE RECOMMENDED THAT DORMANT COMPANIES IN HONG KONG EXEMPTED FROM CERTAIN ADMINISTRATIVE REQUIREMENTS UNDER THE ORDINANCE," THE SPOKESMAN SAID.

THESE REQUIREMENTS

INCLUDE

KEEPING

AND AUDITING

SHOULD BE COMPANIES

ACCOUNTS,

HOLDING AN ANNUAL GENERAL MEETING, FILING ANNUAL AND OTHER RETURNS.

"THESE WERE NOT CONSIDERED TO BE USEFUL REQUIREMENTS AS APPLIED TO DORMANT COMPANIES," THE SPOKESMAN SAID.

COMPLY WITH "DORMANT COMPANIES WOULD, HOWEVER, STILL NEED TO OTHER STATUTORY REQUIREMENTS THAT WERE IMPORTANT FOR THE PROTECTION OF PRE-EXISTING CREDITORS, HE SAID.

THE

||

A PROPOSAL BY THE COMMITTEE ALSO CONSIDERED STANDING

AT SECURITIES AND FUTURES COMMISSION (SFC) TO BAN THE USE OF PROXIES THE MEETINGS OF THE STOCK EXCHANGE OF HONG KONG LTD FOR THE OF COUNCIL MEMBERS.

ELECTION

"IT WAS THOUGHT THAT THE USE OF PROXIES DID NOT ENSURE THAT THE ON THE PRINCIPAL PARTICIPANTS IN THE STOCK MARKET WERE REPRESENTED

"THE SPOKESMAN SAID. COUNCIL IN A FAIR AND BALANCED MANNER,

OF PROXIES, "INSTEAD OF PROPOSING AN OUTRIGHT BAN ON THE USE

THE THE STANDING COMMITTEE RECOMMENDED THAT SECTIONS 114C AND 115 OF COMPANIES ORDINANCE SHOULD BE AMENDED.

"THE

SHOULD

ONLY

STOCK EXCHANGE AMENDMENTS PROVIDE THAT A MEMBER OF THE

BE ALLOWED

A

CERTAIN ΤΟ

PROXY UNDER APPOINT

PARTNER OR CIRCUMSTANCES, THAT THE PROXY SHOULD BE BOTH A DIRECTOR, EMPLOYEE OF THE MEMBER AND BE REGISTERED WITH THE SFC UNDER PART VI OF THE SECURITIES ORDINANCE, AND THAT NO PERSON SHOULD ACT AS PROXY MORE THAN ONE MEMBER.

"

FOR

WAS

ORDINANCE

SUBSTANTIALLY AMENDED VERSION OF THESE RECOMMENDATIONS INCORPORATED IN THE STOCK EXCHANGE UNIFICATION (AMENDMENT) 1991," HE SAID.

REGARDING THE THEIR OWN

THE STANDING COMMITTEE'S RECOMMENDATIONS ENACTMENT OF LEGISLATION TO ENABLE COMPANIES TO PURCHASE SHARES WERE EMBODIED IN THE COMPANIES (AMENDMENT) (NO. 2) BILL 1991.

"DISTRIBUTABLE ASSISTANCE BY

A

THE BILL ALSO INCLUDED PROVISIONS DEFINING PROFITS" AND PROHIBITING THE GIVING OF FINANCIAL COMPANY FOR THE PURCHASE OF ITS OWN SHARES.

THE

BILL WAS

SUBSEQUENTLY

ON REVISED,

RELATING

ΤΟ

THE

FURTHER GRANT OF

RECOMMENDATION OF THE COMMITTEE, TO GIVE A POWER TO THE SFC TO

THE PROVISIONS EXEMPTIONS

AUTHORISATION FROM REPURCHASES BY LISTED COMPANIES.

"THE

WAS LEGISLATION

ENACTED AS THE COMPANIES { AMENDMENT) ORDINANCE IN JULY 1991,

JULY 1991," THE SPOKESMAN SAID.

IN

THE SECURITIES (DISCLOSURE OF INTERESTS) ORDINANCE, ENACTED JULY 1988, APPLIED ONLY TO COMPANIES INCORPORATED IN HONG KONG.

/"IN FEBRUARY

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