XN000022-1987-08-04 — Page 4

TUESDAY, AUGUST 4.

AUGUST 4, 1987

RECENT

YEARS HAD MOVED ALONG HE NOTED THAT HONG KONG IN PATTERN OF DISCLOSURE FOR THE BENEFIT OF INVESTORS AND DEPOSITORS THE GENERAL WELL BEING OF THE COMPANIES CONCERNED.

A

AND

HAVE TAKEN SOMETHING WE THE CONCEPT OF 'A

FOR

WE INSTANCE, "IN THE NEW BANKING ORDINANCE, POWERS TO VET THE FITNESS OF CONTROLLERS AND DIRECTORS, HAD ALREADY PUT INTO OUR INSURANCE LEGISLATION IN FIT AND PROPER PERSON',

REQUIRED ALL NEW IN A BANK OR

DEPOSIT-TAKING

INVESTORS TO BE COMPANY

"AND WE WENT FURTHER AND VETTED IF THEIR SHAREHOLDING REACHES 10 PER CENT OF THE COMPANIES' EQUITY.

"AND WE

PRESSING ARE

AHEAD GENERALLY WITH MORE CORPORATE AND ON PURCHASES, ON THE DISCLOSURE REQUIREMENTS ON SHAREHOLDINGS LINES OF THOSE WHICH APPLY IN THE UNITED KINGDOM,

*

HE SAID.

THE THIRD BUTTRESS, SAID MR NENDICK, WAS THE ROLE OF "HERE AGAIN IT IS A QUESTION OF INDIVIDUAL STANDARDS."

AUDITORS.

THE PRIME HE SAID THAT WHILE THE BOARD OF DIRECTORS MUST BEAR

INVOLVED IN THE MARKETS RESPONSIBILITY, SHAREHOLDERS AND ALL THOSE EXPECTED THE PUBLISHED ACCOUNTS TO PRESENT A TRUE AND FAIR VIEW.

THE

THE ACCOUNTS, THE "IN ESTABLISHING THIS ESSENTIAL QUALITY IN

OF

AND STANDARD HIGHEST

MUST INDEPENDENCE AUDITOR MUST HAVE

FIRMS. FRAUD IS ADMITTEDLY FOLLOW THE BEST PRACTICES OF HIS PEER

ALL IF HARD TO DISCOVER IF PRACTISED CAREFULLY AND MOST DIFFICULT OF THE FRAUD IS DIRECTED FROM THE TOP OF A COMPANY.

"I BELIEVE THAT RIGOROUS FORM OF AUDIT, MUCH MORE DIFFICULT AND BEHIND THEM THAT OF THE NENDICK SAID.

IF THERE IS IN PLACE AN

AND INDEPENDENT A WORSE BECOMES MOVING FROM ONE BAD STEP TO

NON-EXECUTIVE DIRECTORS AND THE ROLE OF THE

GREATLY

MR SHAREHOLDERS IS

STRENGTHENED,

THE FINAL BUTTRESS MR NENDICK TOLD ROLE OF THE AUTHORITIES.

THE PARTICIPANTS WAS

THE

BE HEADING IN THE

COMMERCIAL WITH

CRIME MAY DETECTION

BE IT WILL BE

"HERE IN HONG KONG WE CAN FAIRLY CLAIM TO

MUST DEAL RIGHT DIRECTION. THE AUTHORITIES WITH THE

IT DESERVES. DIFFICULT. BUT IT MUST BE SEEN THAT ONCE IT IS DETECTED DEALT WITH WITHOUT FEAR OR FAVOUR.

PROMPTNESS

AND

SEVERITY

"THE PROMPTNESS