XN000022-1985-09-24 — Page 8

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TUESDAY, SEPTEMBER 24, 1985

PROVISION WILL BE MADE FOR THE FINANCIAL SECRETARY TO APPOINT INSPECTORS TO INVESTIGATE SUSPECTED BREACHES OF THE REQUIREMENTS THUS IMPOSED.

OTHER PROVISIONS WILL ENABLE THE COMPANY TO INVESTIGATE FOR ITSELF THE TRUE OWNERSHIP OF ITS VOTING SHARES, OR, IF THERE IS ANY GOOD REASON FOR IT, AN INSPECTOR MAY BE APPOINTED BY THE FINANCIAL SECRETARY.

FAILURE TO DISCLOSE THE TRUE OWNERSHIP OF ANY SHARES MAY ENTAIL RESTRICTIONS ON THE DISPOSAL OF THE SHARES IN QUESTION OR THE EXERCISE OF RIGHTS CONNECTED THEREWITH, IMPOSED EITHER BY THE COURT OR BY THE FINANCIAL SECRETARY AS THE CASE MAY BE. IN THE LATTER EVENT THERE WILL BE AN APPEAL TO THE COURT, AND IN EITHER EVENT APPLICATION MAY BE MADE TO THE COURT TO SET ASIDE RESTRICTIONS ALREADY IMPOSED.

THE COMMITTEE UNDERSTANDS THAT NEW SECURITIES (STOCK EXCHANGE LISTING) RULES, TO BE MADE BY THE SECURITIES COMMISSION, ARE LIKELY TO COME INTO OPERATION EARLY NEXT YEAR, CONTAINING PROVISIONS WHICH WILL REQUIRE DISCLOSURE OF CERTAIN INFORMATION AS TO DIRECTORS' SHAREHOLDINGS IN THE SIX-MONTHLY AND ANNUAL DIRECTORS' REPORTS TO SHAREHOLDERS.

ALTHOUGH THESE REQUIREMENTS WILL BE TO SOME EXTENT COMPLEMENTARY TO THE COMMITTEE'S PROPOSALS. THEIR NATURE AND SCOPE IS BASICALLY DIFFERENT, AND THE COMMITTEE IS SATISFIED THAT THEY DO NOT DETRACT FROM THE URGENT NEED OF THE LEGISLATION SUGGESTED.

COPIES OF THE INTERIM REPORT HAVE BEEN SENT TO ASSOCIATIONS THOUGHT LIKELY TO ASSIST, AND FURTHER COPIES MAY BE OBTAINED FROM THE SECRETARY OF THE STANDING COMMITTEE, REGISTRAR GENERAL'S DEPARTMENT, CENTRAL GOVERNMENT OFFICES, WEST WING, 10TH FLOOR, HONG KONG.

THE COMMITTEE WILL WELCOME COMMENTS, IN EITHER ENGLISH OR CHINESE, FROM THE PUBLIC. COMMENTS SHOULD BE SENT TO THE SECRETARY AT THE ABOVE ADDRESS, TO REACH HIM NOT LATER THAN NOVEMBER 25.

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