FRIDAY, JANUARY 21, 1994
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BILL TO BETTER REGULATE COMPANIES IN THE PIPELINE
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WORK ON A BILL TO BETTER REGULATE COMPANIES IS NOW PROCEEDING A VIEW TO BRINGING IT FORWARD DURING THE CURRENT SESSION OF THE LEGISLATIVE COUNCIL, THE SECRETARY FOR FINANCIAL SERVICES, MR MICHAEL CARTLAND, SAID THIS (FRIDAY) EVENING.
MR CARTLAND WAS ADDRESSING THE ANNUAL DINNER OF THE INSTITUTE OF CHARTERED SECRETARIES AND ADMINISTRATORS IN HONG KONG.
HE SAID THE BILL, WHICH AIMED AT EXTENDING IMMUNITY AGAINST ANY BREACH OF CONFIDENTIALITY TO AUDITORS OF LISTED AND RELATED COMPANIES WHO REPORTED SUSPECTED FRAUD OR OTHER IRREGULARITIES ΤΟ THE APPROPRIATE REGULATOR, WAS MENTIONED BY THE GOVERNOR IN HIS POLICY ADDRESS LAST OCTOBER.
"THE PROPOSED LEGISLATION IS SIMILAR TO THAT ALREADY IN PLACE IN RESPECT OF AUDITORS OF FINANCIAL INSTITUTIONS, HE SAID.
MR CARTLAND NOTED, HOWEVER, THAT THE PUSH FOR BETTER CORPORATE DISCIPLINE COULD NOT AND SHOULD NOT STOP AT LISTED COMPANIES.
"I HOPE AND BELIEVE THAT SOME OF THE LESSONS OF SOUND CORPORATE MANAGEMENT APPLICABLE TO LISTED COMPANIES WILL FILTER DOWN THROUGH THE BUSINESS COMMUNITY AT LARGE, HE SAID.
THE
HE ADDED THAT THE GOVERNMENT WAS GIVING SERIOUS THOUGHT TO SUGGESTION THAT IMMUNITY TO AUDITORS OF LISTED COMPANIES AGAINST POTENTIAL BREACHES OF CLIENT CONFIDENTIALITY SHOULD BE EXTENDED TO AUDITORS OF ALL COMPANIES.
ON DIRECTORS' DUTIES AND RESPONSIBILITIES, MR CARTLAND SAID THE GOVERNMENT SUPPORTED WHOLEHEARTEDLY AN INITIATIVE BY THE LOCAL BRANCH OF THE INSTITUTE OF DIRECTORS TO DRAW UP A SET OF GUIDELINES FOR DIRECTORS.
"I BELIEVE THAT THERE IS A GENUINE LACK OF KNOWLEDGE AND AWARENESS ON THE PART OF MANY COMPANY DIRECTORS AND A CODE OF CONDUCT CAN OFFER SOME GUIDANCE," HE SAID.
MR CARTLAND SAID THE GOVERNMENT LOOKED FOR SUPPORT OF PROFESSIONAL ASSOCIATIONS TO LEAD BY EXAMPLE AND TO IMPROVE STANDARDS OF ADMINISTRATION AND ETHICAL PRACTICE WITHIN COMPANIES OF ALL KINDS.
"WE ARE HAPPY TO WORK CLOSELY WITH ORGANISATIONS WILLING ΤΟ EMBRACE THIS ROLE AND THEREBY TO HELP HONG KONG RETAIN ITS POSITION IN THE INTERNATIONAL COMMUNITY IN THE YEARS AHEAD," HE SAID.
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