1974-HKRS28-16-22_Part01 — Page 38

(Cap. 37.3

24

of the company, unless the director is, in the opinion of the Commission, a person of good reputation ex- perienced in dealing in securities;

(viii) a corporation, unless each director of the cor- poration who actively participates in the corporation's business of dealing in securities is also a member of the company:

(ix) a corporation the liability of whose members is limited, unless each director of the corporation who actively participates in the corporation's business of dealing in securities is jointly and severally liable for the debts and obligations of the corporation, whether incurred before or after he became a director of the corporation;

(x) a firm of which any partner, being an individual, was not born in Hong Kong or has not been ordinarily resident in Hong Kong for 5 out of the 7 years imme- diately preceding the application of the firm for member. ship of the company, unless that individual is, in the opinion of the Commission, a person of good reputation experienced in dealing in securities;

(xi) a firm of which any partner is a corporation if that corporation is one which would be required to be excluded from membership of the company by virtue of sub-paragraph (vii):

(xii) a firm, unless each of the partners of the firm who actively participates in the firm's business of deal- ing in securities is also a member of the company;

(xiii) a limited partnership registered under the Limited Partnerships Ordinance, unless each partner who actively participates in the partnership's business of dealing in securities is a general partner;

(d) that the constitution of the company makes satisfactory

provision-

(i) for the election by ballot at a general meeting of the company of a committee to administer the stock exchange to be operated by the company;

(ii) for all members of the company to have equal rights of voting at its general meetings;

(iii) for at least four-fifths of the membership of the committee referred to in sub-paragraph (D) to be comprised of persons who are members of the stock exchange to be operated by the company;

25

(iv) for the retirement of all the members of the committee at the first annual meeting of the company after approval under this section and for the retirement of at least one-third of the committee at each succeeding annual general meeting so that no person may be a member of the committee for more than 3 years without standing for re-election;

(e) that the rules of the stock exchange to be operated by the company are such as to ensure dealing in securities in such a manner as to protect purchasers, holders and sellers of securities to be dealt with on the exchange and include, in addition to any other provisions required by or under this Ordinance-

(i) a provision to the effect that, when a dealer who is a member of the company is purchasing and selling securities on his own account, be shall notify that fact to the person with whom he is dealing;

(ii) a provision prohibiting any member of the com- pany who is a director of a corporation from acting as a dealer in the shares of that corporation;

(iii) a provision requiring the company to maintain adequate daily records of all dealings in securities on the stock exchange:

(iv) a provision requiring the company to keep the records maintained under sub-paragraph (iii) available for inspection by members of the public on payment of a fee not exceeding that prescribed by rules:

(f) that the company-

() has and will maintain to the satisfaction of the Commission an adequate and properly equipped place of business; and

(ii) undertakes to operate its stock market only at a place in Hong Kong approved by the Commission;

(g) that the company will make the deposits required to be made to the compensation fund established under Part X:

(4) that it is in the public interest to grant approval under

this section.

(4) The Commission may, on application being made to it in writing by a company approved or deemed to be approved