XN000022-1973-08-01 — Page 7

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Wednesday, August 1, 1973

COMPANIES LAW REVISION COMMITTEE'S SECOND REPORT

Sweeping changes are being proposed in Hong Kong's company laws

to adapt them to modern conditions and provide greater protection to investors

and the business community.

The proposals are contained in the second report of the Companies

Law Revision Committee which was tabled in the Legislative Council today.

In general, the Committee, under the chairmanship of Mr. W.K. Thomson,

recommends that the existing Companies Ordinance should be brought into

line with the United Kingdom Companies Act of 1948, and certain sections

of the 1967 Act. Various modifications are however, proposed to meet local

conditions and to give effect to recommendations made by the

Jonkins Committee in Britain.

It emphasizes that high priority should be accorded to the preparation

of the necessary legislation along the lines of the recommendations in the

357-page report.

These include

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Making "insider dealings" and the passing on of inside

information in transactions relating to shares of a

company, a criminal offence with provisions for civil liability.

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Requiring persons to disclose information in respect

to any suspected dealing.

Preventing company directors from issuing shares

without the prior approval of the company.

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Allowing the issue of shares of no par value.

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