WEDNESDAY, APRIL 22, 1992
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"IN FEBRUARY 1991, THE STANDING COMMITTEE CONSIDERED A PROPOSAL TO EXTEND THE ORDINANCE TO COVER OVERSEAS COMPANIES LISTED ON THE HONG KONG STOCK EXCHANGE, THE SPOKESMAN SAID.
THE PROPOSAL ALSO INVOLVED THE REPEAL OF MOST OF THE SANCTIONS THAT COULD BE IMPOSED BY 'FREEZING ORDERS'.
IT WAS CONSIDERED THAT IF THE SANCTIONS COULD NOT BE ENFORCED AGAINST OVERSEAS COMPANIES, THEY SHOULD NOT BE ENFORCED AGAINST LOCAL COMPANIES EITHER.
A
"MEMBERS AGREED THAT THE PRIMARY AIM SHOULD BE TO MAINTAIN LEVEL PLAYING FIELD FOR ALL LISTED COMPANIES, WHETHER INCORPORATED LOCALLY OR OVERSEAS, AND THEY THEREFORE RECOMMENDED THAT THE ORDINANCE SHOULD BE AMENDED ACCORDINGLY," THE SPOKESMAN SAID.
THE AMENDMENTS WERE INCLUDED IN THE SECURITIES (DISCLOSURE OF INTERESTS) (AMENDMENT) ORDINANCE 1991.
WAS
THE SECURITIES (DISCLOSURE OF INTERESTS) ORDINANCE, AS AMENDED, BROUGHT INTO OPERATION ON SEPTEMBER 1, 1991 TOGETHER WITH THE SECURITIES (INSIDER DEALING) ORDINANCE AND COMPANIES (AMENDMENT} ORDINANCE 1991.
COMMITTEE
"AT THE REQUEST OF THE STOCK EXCHANGE, THE STANDING ALSO CONSIDERED A DOCUMENT DEALING WITH THE POSSIBILITY OF GIVING A NEW 'TRADING LISTING STATUS' TO COMPANIES THAT SOUGHT TO MOVE THEIR LEAD REGULATION OVERSEAS WHILE THE MAJORITY OF THEIR SHAREHOLDERS TRADING REMAINED IN HONG KONG," THE SPOKESMAN SAID.
AND
AFTER CAREFUL CONSIDERATION, THE STANDING COMMITTEE CONCLUDED THAT THERE WAS NO OBJECTION IN PRINCIPLE TO THE PROPOSED NEW LISTING STATUS PROVIDED THAT THE HONG KONG REGULATORS COULD BE SATISFIED ON A NUMBER OF SPECIFIED CONDITIONS.
"IT WAS HOWEVER EMPHASISED THAT THE DECISION IN RESPECT OF ANY PARTICULAR APPLICATION WOULD DEPEND VERY MUCH ON THE OVERALL CIRCUMSTANCES OF THE CASE,' THE SPOKESMAN SAID.
THE STANDING COMMITTEE ALSO ENDORSED THE RECOMMENDATIONS OF A SUB-COMMITTEE TO INCORPORATE INTO PART III OF THE COMPANIES ORDINANCE PROVISIONS WHICH WERE SIMILAR TO THE NEW LEGISLATION ON REGISTRATION OF CHARGES INTRODUCED BY THE U.K. COMPANIES ACT 1989 (BUT NOT YET BROUGHT INTO OPERATION), SUBJECT TO CERTAIN NECESSARY MODIFICATIONS TO SUIT THE PARTICULAR CIRCUMSTANCES OF HONG KONG,
OF
UNDER SECTION 109 (1) OF THE COMPANIES ORDINANCE, COMPANIES ARE REQUIRED TO FILE A COPY OF THEIR ANNUAL RETURNS WITH THE REGISTRAR COMPANIES WITHIN 42 DAYS OF THE ANNUAL GENERAL MEETING.
"SINCE MOST COMPANIES TEND TO HOLD THEIR ANNUAL GENERAL MEETINGS AROUND THE END OF THE CALENDAR YEAR, THIS LEADS TO A SUDDEN INFLUX OF ANNUAL RETURNS DURING JANUARY AND FEBRUARY, CAUSING SERIOUS OPERATIONAL PROBLEMS FOR THE COMPANIES REGISTRY AND INCONVENIENCE MEMBERS OF THE PUBLIC USING IT, THE SPOKESMAN SAID.
FOR
/"IN ORDER