XN000022-1980-07-18 — Page 8

FRIDAY, JULY 18, 1980

IT HAS TO BE STRESSED, THE SPOKESMAN SAID, THAT THIS LIST IS ONLY A BRIEF OUTLINE OF THESE PROVISIONS AND THAT THE BILL ALSO DEALS WITH MANY OTHER SUBJECTS SUCH AS REGISTRATION OF CHARGES, LIQUIDATION OF COMPANIES AND INSPECTION OF COMPANIES,

ANYONE WHO HAS ANY INTEREST IN COMPANY MATTERS IS URGED TO OBTAIN A COPY OF THE BILL ITSELF TO STUDY HOW ITS PROVISIONS WILL, IF APPROVED IN DUE COURSE, AFFECT HIM.

COPIES OF THE BILL WHICH IS CONTAINED IN SUPPLEMENT NO.5 TO THE GAZETTE DATED JULY 18 ARE OBTAINABLE FROM THE GOVERNMENT PUBLICATIONS CENTRE, GENERAL POST OFFICE BUILDING, CONNAUGHT PLACE, HONG KONG.

THE SPOKESMAN SAID THAT THE GOVERNMENT INTENDS TO INTRODUCE THE BILL INTO THE LEGISLATIVE COUNCIL IN THE NEXT SESSION.

ANY COMMENTS ON THE BILL FROM INTERESTED PARTIES WOULD BE WELCOMED AND SHOULD BE ADDRESSED IN WRITING TO THE REGISTRAR OF COMPANIES, CENTRAL GOVERNMENT OFFICES, WEST WING, 11TH FLOOR, HONG KONG, BEFORE OCTOBER 31, 1980.

NEW BILL PROPOSES TO REGULATE GOLD

DEALINGS BY 'FRINGE

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OPERATORS

GOVERNMENT IS TO INTRODUCE INTO THE LEGISLATIVE COUNCIL SOON THE COMMODITIES TRADING (AMENDMENT) BILL 1980 DESIGNED TO REGULATE GOLD DEALINGS BY 'FRINGE OPERATORS, AND TO CLARIFY CERTAIN OFFENCES UNDER THE COMMODITIES TRADING ORDINANCE IN ORDER TO FACILITATE EFFECTIVE PROSECUTION.

A GOVERNMENT SPOKESMAN TODAY (FRIDAY) EXPLAINED THAT THE PROPOSED LEGISLATION WOULD PROTECT THE PUBLIC FROM MALPRACTICES BY 'FRINGE' OPERATORS.

THE SPOKESMAN SAID IT WAS COMMON PRACTICE AMONG SOME COMMODITY COMPANIES, PARTICULARLY GOLD DEALERS, BOTH REGISTERED AND UNREGISTERED, TO EMPLOY TEAMS OF +MOSTLY UNQUALIFIED SALESMEN, OPERATING LARGELY ON A COMMISSION BASIS, USING HIGH PRESSURE SALES TECHNIQUES + TO INDUCE MEMBERS OF THE PUBLIC TO BUY AND SELL COMMODITIES.

THIS IS CLEARLY UNDESIRABLE,+ HE SAID, AND THE PROPOSED LEGISLATION WOULD AMEND THE EXISTING ORDINANCE, PROHIBITING THE HAWKING OF FUTURES CONTRACTS.+

CONTRAVENTION COULD MEAN A MAXIMUM FINE OF $10 000 AND IMPRISONMENT FOR SIX MONTHS.

THE TYPE OF 'FRINGE OPERATORS IT IS PROPOSED TO REGULATE ARE THOSE WHO ARE NEITHER REGISTERED DEALERS UNDER THE ORDINANCE NOR MEMBERS OF THE CHINESE GOLD AND SILVER EXCHANGE SOCIETY.

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