XN000022-1989-04-12 — Page 27

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WEDNESDAY, APRIL 12, 1989

SFC SHOULD HAVE EFFECTIVE POWER AND RESOURCES

*

(SFC) SHOULD BE MONITOR THE NECESSARY CHECKS

THE NEW SECURITIES AND FUTURES COMMISSION VESTED WITH NECESSARY POWER AND RESOURCES TO EFFECTIVELY FINANCIAL SECURITIES MARKET AND MUST BE SUBJECT TO AND BALANCES SO AS TO GUARD AGAINST FUTURE EXCESSES.

DURING

THE AND

THE HON STEPHEN CHEONG SAID THIS TODAY (WEDNESDAY) RESUMED DEBATE IN THE LEGISLATIVE COUNCIL FUTURES COMMISSION BILL 1989.

ON THE SECURITIES

START

MR CHEONG SAID THAT, RIGHT FROM THE GROUP TO STUDY THE BILL, OF WHICH HE WAS CONVENOR, REALISED THAT

THE LEGCO AD HOC HAD TAKEN ON A HEAVY RESPONSIBILITY.

THEY

AND THE NEW INSTALLED THE то THIS BILL OR ADMINISTRATION THAT THEY

WORKING CLOSELY WITH THE ADMINISTRATION COMMISSIONER FOR SECURITIES AND FUTURES, THE GROUP HAD NECESSARY CHECKS AND BALANCES THROUGH AMENDMENTS THROUGH REACHING AN UNDERSTANDING WITH THE WOULD ADDRESS POINTS OF CONCERNS THROUGH ADMINISTRATIVE MEANS.

STAGE AMENDMENTS WHICH DEALT WITH THE

MR CHEONG SAID THAT A TOTAL OF 270 COMMITTEE WERE INCORPORATED INTO THE BILL, INCLUDING 80 CHINESE TEXT.

THE FIRST OF THE MAJOR AMENDMENTS CONCERNED THE THERE SHOULD BE

AN EQUAL NUMBER OF EXECUTIVE DIRECTORS ON THE SFC BOARD,

AND AND THAT THE CHAIRMAN CASTING VOTE IN CASE OF A TIED VOTE.

AND ACCORDINGLY

PROPOSAL

THAT

NON-EXECUTIVE

SHOULD HAVE A

OPPORTUNITY

THAT SUCH AN OF RECOMMENDED THAT BOARD, IN ORDER DOMINANCE BY THE

MR CHEONG SAID THAT THE AD HỌC GROUP CONSIDERED ARRANGEMENT WOULD DEPRIVE THE NON-EXECUTIVES OF THE COUNTER-BALANCING THE EXECUTIVES, THERE SHOULD BE A MAJORITY OF NON-EXECUTIVES ON THE TO ALLEVIATE THE CONCERN IN THE MARKET EXECUTIVES.

ABOUT THE

"THE ADMINISTRATION, HOWEVER, CONSIDERS THAT THE SFC SHOULD RUNN BY FULL-TIME

BE PROFESSIONALS WHO ARE FAMILIAR SITUATIONS IF THE SFC IS TO COMMAND THE

WITH MARKET RESPECT THEREFORE FUNCTION EFFECTIVELY."

OF THE MARKET AND

to

BE NO QUESTION EXPECTED

"FURTHERMORE, THEY CONSIDER THAT THERE SHOULD OF DOMINATION BY THE EXECUTIVES SINCE THE NON-EXECUTIVES ARE TO BE PEOPLE OF INDEPENDENT MIND."

COMPOSITION

THE

WHILE NOTING THE ADMINISTRATION'S CONCERN THAT THE OF THE BOARD SHOULD REMAIN AS PROPOSED, AND TO EXECUTIVES WOULD NOT BE ABLE TO OVERDOMINATE THE BOARD, THE GROUP ENSURE THAT RECOMMENDED THAT, IN THE EVENT OF A TIED VOTE, THE CHAIRMAN SHOULD REQUIRED TO CONSULT THE FINANCIAL SECRETARY SHOULD EXERCISE HIS CASTING VOTE, MR CHEONG SAID.

HE WISH TO

HAD BE

/ALSO, HE