XN000022-1989-12-21 — Page 10

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THURST Y DECEMBER 21, 1989

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INCREASED PENALTIES UNDER COMPANIES ORDINANCE PROPOSED

THE GOVERNMENT HAS PROPOSED TO INCREASE CERTAIN UNDER THE COMPANIES ORDINANCE FOLLOWING AN OVERALL LEVEL OF PENALTIES PRESCRIBED IN THE ORDINANCE.

PENALTIES

REVIEW INTO THE

DETAILS OF THE PROPOSED INCREASES WERE CONTAINED IN THE COMPANIES (AMENDMENT) (NO. 2) BILL 1989 TO BE PUBLISHED IN THE GAZETTE TOMORROW, A GOVERNMENT SPOKESMAN SAID TODAY (THURSDAY}.

"IN CONSIDERING WHICH PENALTIES ARE TO BE INCREASED, WE HAVE TAKEN A NUMBER OF FACTORS INTO ACCOUNT. THESE INCLUDE THE NATURE OF THE OFFENCE, THE POSSIBLE CONSEQUENCE OF ANY BREACH AND THE EFFECTS OF INFLATION, HE SAID.

THE SPOKESMAN ADDED THAT THE LEVEL OF PENALTIES PRESCRIBED IN THE ORDINANCE WAS LAST REVISED IN 1984.

IN GENERAL TERMS, THE PENALTIES TO BE INCREASED RELATE TO

OFFENCES:

FOR WHICH THE EXISTING PENALTY WAS TOO LOW WHEN INITIALLY SET AND IS INSUFFICIENT TO SERVE AS A DETERRENT;

INVOLVING PROSPECTUSES BECAUSE OF THE POTENTIAL DAMAGE THAT CAN BE CAUSED TO MEMBERS OF THE INVESTING PUBLIC BY ANY BREACH;

INVOLVING THE MAKING OF UNTRUE STATEMENTS OR THE GIVING OF FALSE INFORMATION WHETHER IN A PROSPECTUS OR TO AUDITORS OR IN ANSWER ΤΟ QUESTIONS FUT BY THE FINANCIAL SECRETARY UNDER SECTION 152A OF THE ORDINANCE IN VIEW OF THE GRAVITY OF SUCH OFFENCES; AND

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FOR WHICH THE MAXIMUM

LEVEL OF PENALTY PRESENTLY RANGES FROM $5,000 TO $10,000 TO TAKE ACCOUNT OF INFLATION AND ALSO TO TAKE ACCOUNT OF THE NATURE OF OFFENCES.

"THE BILL. ALSO PROPOSES TO INTRODUCE A ONE-TIME FINE IN ADDITION TO THE EXISTING DAILY FINE IMPOSED ON CONTINUING OFFENCE,

HE SAID.

"AT PRESENT, ONLY A DAILY FINE IS IMPOSED FOR A CONTRAVENTION OF ANY PARTICULAR PROVISION IN THE ORDINANCE.

"ΤΟ ACKNOWLEDGE

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CONTINUING

THE TWO ASPECTS OF A CONTINUING DEFAULT OFFENCE NAMELY, THE INITIAL. COMMITTAL OF THE OFFENCE AND ITS CONTINUATION, WE PROPOSE THAT A ONE-TIME FINE SHOULD ALSO BE E IMPOSED, THE SPOKESMAN SAID.

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"THE GOVERNMENT ALSO TAKES THE OPPORTUNITY TO CONSOLIDATE ALL THE OFFENCES UNDER THE ORDINANCE AND CORRESPONDING PENALTIES IN A NEW SCHEDULE FOR CLARITY AND TO FACILITATE FUTURE REVISION OF THE LEVEL OF PENALTIES AS NECESSARY, THE SPOKESMAN SAID.

THE BILL IS DUE TO BE INTRODUCED INTO THE LEGISLATIVE ON JANUARY 10 NEXT YEAR.

COUNCIL

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