XN000022-1988-10-14 — Page 10

ON

FRIDAY, OCTOBER 14, 1988

"IN THIS WAY BOTH THE PUBLIC,

AND THE

OF MANAGEMENT

LISTED

COMPANIES, WILL KNOW WHO REALLY CONTROLS THE LISTED COMPANY.

"IT WILL MAKE

CREEPING

TAKEOVERS

AND

INSIDER

DEALING MUCH

HARDER TO CONCEAL, HE ADDED.

WOULD

HE SAID THIS NEW LAW

COME INTO EFFECT ONCE THE WAS IN A SECURITIES AND FUTURES COMMISSION HAD BEEN ESTALBISHED AND POSITION TO ENFORCE THE DISCLOSURE REQUIREMENTS.

SPEAKING ABOUT INSIDER WOULD BE INTRODUCED TO UNDER THE EXISTING TRIBUNAL SYSTEM.

DAVID DEALING, SIR

SAID LEGISLATION INCREASE SANCTIONS AGAINST INSIDER DEALERS

IT PROBLEM.

UNDERMINES THE

"WE ARE DETERMINED TO DO OUR BEST

TO SEE THAT IT DOES NOT

"INSIDER DEALING IS A

T

WORLDWIDE

FAIRNESS OF THE MARKET, THE GOVERNOR SAID.

...

OCCUR, HE ADDED.

REQUIRING

INSIDER THE AVOIDED; IMPOSING REFERRING

SIR DAVID SAID THE NEW SANCTIONS WOULD INCLUDE BARRING DEALERS FROM BECOMING DIRECTORS OF COMPANIES; DISGORGEMENT OF ANY PROFITS MADE OR LOSSES FINANCIAL PENALTIES OF UP TO THREE TIMES THESE AMOUNTS; AND

BODIES FOR DISCIPLINARY INSIDER DEALERS TO APPROPRIATE PROFESSIONAL ACTION.

то BE A SUBSTANTIAL

"THESE INCREASED SANCTIONS SHOULD PROVE DETERRENT AGAINST INSIDER DEALING, SIR DAVID SAID.

**

THAT ACCOUNTANTS HAD AN

THROUGH MALPRACTICES

THE

IMPORTANT

AUDITING

OF

THE GOVERNOR POINTED OUT ROLE TO PLAY IN COMBATTING COMPANY ACCOUNTS.

"IT GOES WITHOUT SAYING THAT THE ACCOUNTANCY PROFESSION KEY ROLE TO PLAY IN HELPING TO MAINTAIN HONG KONG'S STATUS AS A FINANCIAL CENTRE, SIR DAVID SAID.

"I

HAS A MAJOR

THE FACT THAT

THE PROFESSION

WAS

REPRESENTED

IN

THE

1TS

CONTRIBUTION

ΤΟ

HONG

THE GOVERNOR SAID.

LEGISLATIVE COUNCIL THIS YEAR SHOWED THAT KONG'S ECONOMIC SUCCESS WAS BEING RECOGNISED,

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