XN000022-1989-07-14 — Page 14

13

FRIDAY, JULY 14, 1989

DIRECTORS

AS FOR THE REQUIREMENT OF APPROVAL BY A COMPANY FOR TO DISPOSE OF THE COMPANY'S FIXED ASSETS, THE STANDING COMMITTEE THIS SHOULD PREFERABLY BE REGULATED BY THE STOCK EXCHANGE THROUGH LISTING RULES RATHER THAN BY STATUTE.

FELT

ITS

THE

IT AGREED THAT ONCE THE PROPOSED NEW RULES WERE FINALISED,

SECTION 155A WOULD BE FURTHER OF NEED FOR AMENDMENT OR DELETION CONSIDERED.

OF ITS OWN SHARES THIRD REPORT

"THE SUBJECT OF THE PURCHASE BY A COMPANY WAS FIRST TOUCHED UPON BY THE STANDING COMMITTEE IN ITS COVERING SUBJECTS CONSIDERED IN 1986,

THAT ONLY UNLISTED COMPANIES RECOMMENDED "AT THAT TIME, IT

THE QUESTION SHOULD BE ALLOWED TO PURCHASE THEIR OWN SHARES AND THAT OF ALLOWING LISTED COMPANIES TO PURCHASE THEIR OWN SHARES SHOULD BE

BEEN LEGISLATION HAD

ENACTED CONSIDERED AGAIN AFTER SATISFACTORY

OF SHAREHOLDINGS DEALING WITH (A) DISCLOSURE OF BENEFICIAL OWNERSHIP

PROFITS, (C) DISTRIBUTABLE IN LISTED COMPANIES, (B) INSIDER DEALING, (C} AND (D) FIDUCIARY DUTIES OF DIRECTORS," THE SPOKESMAN POINTED OUT.

OF INTERESTS)

BROUGHT THE NECESSARY

"REGARDING ITEM (A), THE SECURITIES (DISCLOSURE ORDINANCE 1988 WAS ENACTED IN JULY 1988 AND IS EXPECTED TO BE

THE SFC HAS ONCE INTO OPERATION LATER RESOURCES TO ENFORCE ITS PROVISIONS.

**ON

ITEM

{B},

THIS YEAR,

PROPOSALS

TO INCREASE

TRIBUNAL SYSTEM HAVE BEEN INCLUDED IN THE SECURITIES (INSIDER DEALING) BILL WHICH WAS INTRODUCED INTO THE LEGISLATIVE 1989.

SANCTIONS

UNDER THE

COUNCIL ON JULY 12,

(C)

AND (D) ARE

COUNCIL EXECUTIVE

BEING FOR

OWN SHARES, THE

IN

RECENT MIND WAS KEEPING

IN HONG KONG, THIS SUBJECT

REPORT

ITEMS FOR PROPOSALS "LEGISLATIVE AND WILL

TO THE BE SUBMITTED PREPARED CONSIDERATION LATER IN THE YEAR," HE SAID.

"ON THE PURCHASE BY A COMPANY OF ITS

COMMITTEE NOTED THAT THE STANDING

WITH DEVELOPMENTS IN CONNECTION PARTICULARLY THE FACT THAT THE SHARES OF A NUMBER OF LISTED COMPANIES WERE, AT THE TIME THE REPORT WAS WRITTEN, AT A DISCOUNT TO ASSET VALUES."

THEIR NET

COMMITTEE HAD IN FACT

THE SPOKESMAN ADDED THAT THE STANDING RESUMED CONSIDERATION OF THIS SUBJECT DURING 1989.

FROM APART

THESE

COMMITTEE ALSO OF COMPANY BOOKS OF OF AUTHORISED ΤΟ THE INTERPRETATION

STANDING THE TOPICS, CONSIDERED A NUMBER OF IMPORTANT ISSUES SUCH AS THE AUDIT ACCOUNTS, RIGHTS OF SHAREHOLDERS TO INSPECT COMPANY'S

TO OFFICERS ACCOUNT, PROVISIONS RELATING TO LOANS FINANCIAL INSTITUTIONS, AND PROBLEMS RELATING OF PART XI OF THE COMPANIES ORDINANCE.

||

OF "CONSIDERATION SPOKESMAN SAID.

THESE ISSUES

IS

STILL

CONTINUING,

THE

"MEMBERS OF