XN000022-1988-06-08 — Page 9

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WEDNESDAY, JUNE 8, 1988

OF

GOVERNMENT'S SECURITIES REVIEW

THIS PROVISION WOULD BE REVIEWED IN THE LIGHT OF EXPERIENCE

AND IN THE COURSE OF THE THE OPERATION OF THE BILL

OF

RECOMMENDATIONS CONSIDERATION COMMITTEE, HE SAID.

THE

OF THE

DURING THE CONSULTATION

RECEIVED THE THIRD POINT

THE CONCERNED NOMINEE COMPANIES AND IN PARTICULAR WHETHER OR NOT A NOMINEE COMPANY WOULD QUALIFY AS A BARE TRUSTEE FOR EXEMPTION.

EXERCISE BANK'S

OF

PURPOSES

COMPANY, IN

TO HAVE NO ORDER BUT

"IT IS COMMON PRACTICE IN HONG KONG FOR A NOMINEE ITS CUSTOMER, THE ABSENCE OF WRITTEN INSTRUCTIONS FROM DUTY OTHER THAN TO HOLD THE PROPERTY TO THE BENEFICIARY'S TO RESERVE POWER TO VOTE IN WHICHEVER WAY IT CONSIDERS TO BENEFICIARY'S OR ITS CUSTOMER'S BEST INTERESTS," MR NENDICK SAID.

BARE

A DISCRETIONARY "OUR LEGAL ADVICE IS THAT SUCH

A OTHERWISE WHICH IS DOES NOT PREVENT A COMPANY NOMINEE FROM BEING A BARE TRUSTEE OR NOMINEE.

BE IN IT'S

VOTING POWER OR TRUSTEE

WHETHER OF A

"IT IS NOT OUR INTENTION THAT NOMINEE COMPANIES, BANK OR OTHERWISE, SHOULD BE CAUGHT BY THE DISCLOSURE REQUIREMENTS."

IT WOULD PLACE AN UNREASONABLE BURDEN UPON SUCH

HE NOTED. THERE WERE ADEQUATE SAFEGUARDS AGAINST ABUSE,

COMPANIES AND

"THE BENEFICIAL OWNER REMAINS UNDER AN OBLIGATION A NOTIFIABLE INTEREST AND ALSO REMAINS UNDER AN OBLIGATION WITH THE PROVISIONS DESIGNED TO EXPOSE CONCERT SAID.

PARTIES,

то DISCLOSE

TO COMPLY MR NENDICK

"FURTHERMORE, WHERE A LISTED COMPANY

WISHES

TO ENQUIRE INTO NOMINEE TO DISCLOSE

THE OWNERSHIP OF ITS SHARES, IT MAY REQUIRE THE THE BENEFICIARIES INVOLVED.

THE LAST POINT CONCERNED WARRANTS AND WHETHER OR NOT THEY COVERED BY THE BILL.

"

WERE

FOR

MR NENDICK SAID. "THE SHORT ANSWER IS THAT THEY ARE NOT, "WARRANTS ARE MOST COMMONLY RIGHTS OR OPTIONS TO SUBSCRIBE FUTURE SHARES AT A PARTICULAR PRICE WITHIN A FIXED PERIOD.

VOTING RIGHTS ON THE WARRANT 'AS SUCH, THEY DO NOT CONFER HOLDER UNTIL THAT RIGHT OR OPTION IS EXERCISED.

HOWEVER, ONCE THE RIGHT OR OPTION SAID THE DISCLOSURE OBLIGATION THEN AROSE.

WAS

EXERCISED, MR

NENDICK

"THE POSITION REGARDING

DIRECTORS

AND CHIEF EXECUTIVES

IS.

GENERALLY SPEAKING, THE SAME," HE SAID.

WARRANTS

"THEY MUST, HOWEVER, NOTIFY CERTAIN INFORMATION ABOUT GRANTED TO THEM BY THE LISTED COMPANY OR BY ITS ASSOCIATED COMPANIES."

DEBATE ON THE BILL WAS ADJOURNED.

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