XN000022-1977-10-07 — Page 4

FRIDAY, OCTOBER 7, 1977

SECTION 141G SETS OUT THE COMPOSITION OF THE INSIDER DEAL ING TRIBUNAL, THE TRIBUNAL SHALL CONSIST OF A CHAIRMAN AND TWO OTHER MEMBERS. THE CHAIRMAN WILL BE A SUPREME COURT JUDGE, THE OTHER TWO MEMBERS MAY NOT BE PUBLIC OFFICERS.

SECTION 141H PROVIDES THAT THE TRIBUNAL WILL RECEIVE ITS INSTRUCTIONS TO INQUIRE INTO CASES OF INSIDER DEALING FROM THE FINANCIAL SECRETARY, WHO WILL DEFINE THE TERMS OF REFERENCE OF THE TRIBUNAL'S INQUIRY. (THE FINANCIAL SECRETARY WILL NORMALLY, BUT NOT NECESSARILY, BE ACTING ON THE ADVICE OF THE SECURITIES COMMISSION, FOLLOWING INVESTIGATIONS CONDUCTED BY THE OFFICE OF THE COMMISSIONER FOR SECURITIES.) THE TRIBUNAL NEED NOT LIMIT ITSELF TO DETERMINING THE IDENTITY AND CULPABILITY OF THE IMMEDIATE PARTIES TO AN INSIDER DEALING, BUT IS FREE TO INVESTIGATE THE ACTIVITIES OF ANYONE ELSE CONCERNED.

UNDER SECTION 141, THE TRIBUNAL MUST MAKE ITS REPORT AVAILABLE TO THE PUBLIC AND NO PERSON WILL BE LIABLE TO ANY CIVIL OR CRIMINAL PROCEEDINGS BY REASON OF HAVING PUBLISHED A TRUE AND ACCURATE ACCOUNT OR SUMMARY OF ANY REPORT OF THE TRIBUNAL.

SECTION 141J MAKES SOME OF THE PROVISIONS OF THE COMMISSIONS OF INQUIRY ORDINANCE APPLY TO THE TRIBUNAL'S INQUIRIES - IN PARTICULAR, THE TRIBUNAL IS GIVEN THE FULL POWERS AVAILABLE UNDER THAT ORDINANCE TO SUMMON AND QUESTION WITNESSES AND TO REQUIRE THEM TO PRODUCE DOCUMENTS.

UNDER SECTION 141K, THE TRIBUNAL MAY DELEGATE ITS POWERS TO INSPECT BOOKS AND DOCUMENTS AND TO REQUIRE EXPLANATIONS, POWERS WHICH ARE SET OUT IN SUE-SECTION (2) OF 141K, TO THE OFFICE OF THE COMMISSIONER FOR SECURITIES, (IT IS ENVISAGED THAT IT WILL NORMALLY BE THIS OFFICE WHICH CONDUCTS THE INVESTIGATIONS BEFORE REFERRING THE CASES TO THE TRIEUNAL BY THE FINANCIAL SECRETARY.)

THE BILL ALSO PROVIDES FOR THE ADDITION TO THE SECURITIES ORDINANCE OF A THIRD SCHEDULE DEALING WITH THE TRIBUNAL. THE SCHEDULE'S PRINCIPAL PROVISIONS ARE:

(A) THE CHAIRMAN IS TO BE APPOINTED FOR A THREE-YEAR TERM. (B) THE OTHER TWO MEMBERS ARE TO BE APPOINTED FOR THE

PURPOSES OF A SPECIFIED INQUIRY.

(C) ALL SITTINGS OF THE TRIBUNAL WILL DE HELD IN CAMERA. (D) PERSONS IMPLICATED IN AN INQUIRY ARE ENTITLED TO BE

PRESENT AT ALL SITTIES OF THE TRIBUNAL AND TO BE LEGALLY REPRESENTED.

(E)

THE TRIEUNAL MAY ITSELF APPOINT COUNSEL TO ACT ON ITS ICHALF,

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