XN000022-1986-03-09 — Page 4

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SUNDAY, MARCH 9, 1986

AN INSPECTOR ALSO HAS POWER TO REQUIRE ANY DIRECTOR TO PRODUCE DOCUMENTS RELATING TO BANK ACCOUNTS WHICH CONTAIN SUMS WHICH SHOULD HAVE BEEN, BUT WERE NOT, DISCLOSED IN THE COMPANY'S ACCOUNTS OR WHICH ARE CONNECTED WITH THE DIRECTOR'S MISCONDUCT TOWARDS THE COMPANY.

*THE STANDING COMMITTEE AGREED THAT THE EXISTING POWERS

IN THE COMPANIES ORDINANCE ARE INSUFFICIENT AND HAVE RECOMMENDED THAT THEY BE AMENDED TO BRING THEM INTO LINE WITH THE BRITISH PROVISIONS,+ MR JUSTICE CONS SAID.

THE REPORT WHICH HAS BEEN SUBMITTED TO THE EXECUTIVE COUNCIL RECENTLY ALSO LISTED VARIOUS SUBJECTS WHICH WERE STILL UNDER CONSIDERATION BY THE COMMITTEE AT THE END OF LAST YEAR,

THESE SUBJECTS INCLUDED POSSIBLE REVISION OF THE EXISTING PROVISIONS OF THE COMPANIES ORDINANCE ON PROHIBITION OF PROVISION OF FINANCIAL ASSISTANCE BY A COMPANY FOR THE PURCHASE OF ITS OWN SHARES, WHETHER A COMPANY SHOULD BE ALLOWED TO BUY ITS OWN SHARES AND WHETHER THERE SHOULD BE STATUTORY PROVISIONS ON WHAT PROFITS CAN BE DISTRIBUTED BY A COMPANY TO ITS SHAREHOLDERS.

THE STANDING COMMITTEE AT ITS MEETINGS IN 1985 ALSO CONSIDERED THE SUBJECT OF DISCLOSURE OF BENEFICIAL OWNERSHIP OF SHAREHOLDINGS. AN INTERIM REPORT ON THIS WAS PUBLISHED FOR COMMENT IN SEPTEMBER 1985 AND THE COMMITTEE'S FINAL RECOMMENDATIONS WILL BE DEALT WITH SEPARATELY BY THE EXECUTIVE COUNCIL.

ANYONE INTERESTED IN OBTAINING A COPY OF THE COMMITTEE'S REPORT SHOULD WRITE TO THE SECRETARY TO THE STANDING COMMITTEE ON COMPANY LAW REFORM, REGISTRAR GENERAL'S DEPARTMENT, CENTRAL GOVERNMENT OFFICES, WEST WING, HONG KONG.

COMMENTS ON THE RECOMMENDATIONS IN THE REPORT SHOULD BE SUBMITTED IN WRITING TO THE SECRETARY FOR ECONOMIC SERVICES, CENTRAL GOVERNMENT OFFICES, MAIN WING, LOWER ALBERT ROAD, HONG KONG BEFORE APRIL 14.

NOTE TO EDITORS:

THE SECOND REPORT OF THE STANDING COMMITTEE ON COMPANY LAW REFORM IN ENGLISH IS AVAILABLE FOR COLLECTION FROM THE GIS DUTY OFFICER.

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