XN000022-1988-07-13 — Page 22

WEDNESDAY, JULY 13, 1988

21

DISCLOSURE OF INTERESTS BILL SUPPORTED

THE SECURITIES

ILL

(DISCLOSURE OF INTERESTS) BILL 1988, ONCE ENACTED, WOULD BRING HONG KONG IN LINE WITH THE UNITED KINGDOM LEGISLATION ON THE MAJOR REQUIREMENTS FOR DISCLOSURE OF INTERESTS AND IT WOULD STRENGTHEN THE FINANCIAL SECRETARY'S HANDS IN FIRM PRUDENTIAL CONTROL IN HONG

KONG, THE HON MARIA TAM SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

+

WAS

SPEAKING IN SUPPORT OF THE BILL, MISS TAM SAID ITS PURPOSE TO REQUIRE THE BENEFICIAL OWNERS OF 10 PER CENT OR MORE OF THE SHARES OF LISTED COMPANIES TO DISCLOSE PARTICULARS OF THEIR SHAREHOLDINGS.

OF LISTED COMPANIES OF THEIR RENEFICIAL

EXECUTIVES BESIDES, DIRECTORS AND CHIEF WERE ALSO REQUIRED ΤΟ DISCLOSE PARTICULARS INTEREST IN SHARES AND DEBENTURES OF SUCH COMPANIES AND THEIR ASSOCIATED COMPANIES.

GROUP MISS TAM SAID THE LEGCO AD HOC

THAT STUDIED

SUPPORTED IN FELT IT SHOULD BE

PRINCIPLE AND THAT THE NOTIFIABLE INTERESTS, STIPULATED AT 10 PER CENT OF A LISTED SHARE CAPITAL, WAS A REASONABLE STARTING POINT.

THE BILL LEVEL OF

COMPANY'S

NEVERTHELESS, SHE SAID, AS AN INTERNATIONAL FINANCIAL CENTRE, COMPATIBLE HONG KONG SHOULD AIM AT MAKING ITS DISCLOSURE REQUIREMENTS

AS, FOR WITH THOSE ADOPTED BY THE INTERNATIONAL FINANCIAL COMMUNITY, EXAMPLE, IN THE UNITED KINGDOM AND THE UNITED STATES.

"THE AD HOC GROUP REQUESTED THE ADMINISTRATION TO UNDERTAKE CENT REDUCE THE LEVEL OF NOTIFIABLE INTERESTS FROM 10 TO FIVE PER TWO TO THREE YEARS' TIME SHE SAID.

"THE ADMINISTRATION, HOWEVER, DECLINES TO MAKE A COMMITMENT REDUCE THE NOTIFIABLE PERCENTAGE AT THIS STAGE, BUT INDICATED THAT IS THEIR FIRM INTENTION TO DO SO WHEN THE TIME IS RIPE.

ΤΟ

IN

TO

IT

TO MAKE

THE

"THE GROUP THEREFORE REQUESTS THE FINANCIAL SECRETARY

THE GOVERNMENT TO REDUCE A FIRM STATEMENT ON THE INTENTION OF LEVEL OF NOTIFIABLE INTERESTS AS SOON AS IS PRACTICABLE.

IT

FINANCIAL SECRETARY FALL IN

AT THE SAME TIME, MISS TAM HOPED THAT THE

THE SITUATION AND COULD INDICATE HIS COMMITMENT TO REVIEW LINE WITH INTERNATIONAL PRACTICE WITHIN A GIVEN PERIOD OF TIME.

"AT THE REQUEST OF THE AD HOC GROUP, THE ADMINISTRATION HAS CONCLUDING THE AGREED TO CLARIFY IN THE FINANCIAL SECRETARY'S SPEECH SECOND READING DEBATE OF

THE BILL

THAT THE FIVE-DAY NOTIFICATION PERIOD WAS INTENDED TO BE FIVE RUSINESS DAYS,

"I

SHE SAID.

/"THIS IS