XN000022-1988-02-10 — Page 18

WEDNESDAY, FEBRUARY 10, 1988

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COMPANIES (AMENDMENT) BILL SUPPORTED

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THE COMPANIES (AMENDMENT) BILL 1988, WHICH SEEKS ΤΟ RELAX CERTAIN REQUIREMENTS INTRODUCED IN 1984 FOR FINANCIAL INSTITUTIONS DISCLOSE THEIR LOANS TO DIRECTORS AND OFFICERS, WAS SUPPORTED HON PETER POON IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

TO BY THE

SPEAKING IN THE RESUMED DEBATE ON THE BILL, MR POON NOTED THAT FINANCIAL INSTITUTIONS HAD FOUND SUCH DISCLOSURE IN THEIR ANNUAL ACCOUNT'S TO BE CUMBERSOME AND UNDESIRABLE IN VIEW OF THE NATURE OF THEIR BUSINESS.

THE BILL, WHICH MAINLY ADDRESSED THE APPLICATION OF SECTION 161B OF THE PRESENT COMPANIES ORDINANCE, RESTRICTED THE DISCLOSURE IN THEIR ANNUAL ACCOUNTS OF LOANS ΤΟ DIRECTORS AND OFFICERS OF AUTHORISED FINANCIAL INSTITUTIONS OR THEIR HOLDING COMPANIES TO THOSE WHICH WERE BOTH CONCESSIONARY AND OVER $10 MILLION.

HOWEVER, A REGISTER OF ALL TRANSACTIONS REFERRED TO IN SECTION 161B CONTAINING THE RELEVANT PARTICULARS MUST BE MAINTAINED AND AVAILABLE FOR PUBLIC INSPECTION FOR A PERIOD OF 14 DAYS PRECEDING ANNUAL GENERAL MEETING AND SEVEN DAYS THEREAFTER.

THE

"THE AD HOC GROUP STUDYING THE BILL RECEIVED REPRESENTATIONS FROM A LEADING FIRM OF ACCOUNTANTS AND THE HONG KONG SOCIETY OF ACCOUNTANTS. MOST OF THEIR HELPFUL SUGGESTIONS HAVE RESULTING IN THE PROPOSED COMMITTEE STAGE AMENDMENTS,

קו

BREN CONSIDERED

MR POON SAID.

BROUGHT UP IS THE

"THE ONF OUTSTANDING POINT WHICH WAS DIFFICULTY IN DETERMINING WHETHER THE LOAN IS CONCESSIONARY.

"THE TERM 'CONCESSIONARY' IS NOT USED IN THE PRESENT BILL AND THE WORDING CONVEYING THE MEANING OF CONCESSIONARY ALREADY EXISTS IN THE PRESENT SECTION 157H OF THE ORDINANCE.

"THE AD HOC GROUP NOTES THERE MIGHT BE DIFFICULTIES IN INTERPRETATION BUT IN VIEW OF THE RARITY OF SUCH LOANS BEING OVER $10 MILLION, THE PROBLEM WOULD NOT OFTEN ARISE.

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MR POON ADDED THAT IF IT WERE FOUND IN PRACTICE THAT THERE WERE INSUPERABLE DIFFICULTIES, FUTURE AMENDMENTS IN THAT RESPECT COULD BE CONSIDERED IN THE LIGHT OF EXPERIENCE.

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