XN000022-1989-02-23 — Page 3

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THURSDAY, FEBRUARY 23, 1989

THE TIMING OF THE ORGANISATIONAL CHANGES, SUBJECT TO THE AGREEMENT OF THE FINANCE COMMITTEE, WILL BE:

* ESTABLISHMENT OF DRAINAGE SERVICES DEPARTMENT JULY 1989

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ESTABLISHMENT OF PLANNING, ENVIRONMENT AND LANDS BRANCH AND WORKS BRANCH SEPTEMBER 1989

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* ESTABLISHMENT OF PLANNING DEPARTMENT

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JANUARY 1990

FS SATISFIED WITH OUTCOME OF FUTURES EXCHANGE EGM

* *

THE FINANCIAL SECRETARY, MR PIERS JACOBS, TODAY (THURSDAY) SAID HE WAS SATISFIED WITH THE OUTCOME OF THE EXTRAORDINARY GENERAL MEETING OF THE HONG KONG FUTURES EXCHANGE AT WHICH A SUBSTANTIAL MAJORITY OF THE ATTENDING SHAREHOLDERS VOTED BY A SHOW OF HANDS IN SUPPORT OF THREE OUT OF THE FOUR RESOLUTIONS PUT FORTH BY THE BOARD.

THE THREE ADOPTED RESOLUTIONS DEAL WITH THE RESTRUCTURED CAPITAL OF THE FUTURES EXCHANGE.

SHARE

THAN 74

THE FOURTH ONE, WHICH WAS SUPPORTED ON A POLL BY MORE PER CENT OF SHAREHOLDERS, BUT FAILED TO GET THE REQUIRED 75 PER CENT VOTES, CONCERNS THE EXCHANGE'S CONSTITUTIONAL REFORMS AMONG WHICH IS THE PROPOSED DISENFRANCHISMENT OF NON-MEMBER SHAREHOLDERS 18 MONTHS AFTER ITS ADOPTION; THESE NON-MEMBER SHAREHOLDERS WERE ENTITLED TO VOTE AT TODAY'S MEETING.

"THOUGH A RESOLUTION NARROWLY FAILED то BE PASSED ON THE RECONSTITUTION PACKAGE PROPOSED AT THE FUTURES EXCHANGE'S EXTRA-ORDINARY GENERAL MEETING, THE RESULT OF 74.38 PER CENT SUPPORT FROM THE VOTING SHAREHOLDERS IS VERY ENCOURAGING.

"IT IS A POSITIVE INDICATION OF THE GENERAL INTEREST IN THE FUTURES MARKET," MR JACOBS SAID.

"FOR ITS PART, THE GOVERNMENT WILL CONTINUE ΤΟ ENCOURAGE THE EXCHANGE TO ACHIEVE A FULL RECONSTITUTION.

"IN THIS CONTEXT, I SHALL MOVE A RESOLUTION IN THE COUNCIL SHORTLY TO ALLOW THE EXCHANGE TO POSTPONE HOLDING ANNUAL GENERAL MEETING BY A FURTHER THREE MONTHS TO JULY 1, ADDED.

LEGISLATIVE ITS THIRD 1989,

HE

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