XN000022-1990-07-25 — Page 33

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WEDNESDAY, JULY 25, 1990

A

POINTED OUT THAT MR CHEONG, CONVENER OF THE AD HOC GROUP,

DEALING PREDOMINANT CONCERN WAS ON THE WIDTH OF THE SCOPE OF INSIDER

'CONNECTED WITH A CORPORATION" THAT AROSE FROM PROVISIONS, SUCH AS (CLAUSE 3) AND DEFINITION OF "RELEVANT INFORMATION" (CLAUSE 7).

DEVELOPMENT

OF INSIDER SCOPE WIDTH OF THE

ACTIVITIES, AND WAS NOT

OF

KONG HONG

AS AN

HE SAID UNCERTAINTY OVER THE DEALING MIGHT BECOME A DETERRENT TO MARKET

TO THE CONTINUED CONDUCIVE

INTERNATIONAL FINANCIAL CENTRE.

ADMINISTRATION, THE FOLLOWING DISCUSSIONS WITH

RESTRICT ΤΟ

BILL

WERE AGREED

A NUMBER OF THE SCOPE OF THE

CHANGES TO THE PROVISIONS, TOGETHER WITH A NUMBER OF CLARIFICATIONS, HE SAID.

ON THE DEFINITION OF WHAT CONSTITUTED

GROUP

LIKELY

THE

"RELEVANT INFORMATION",

OF TWO COMPONENTS

AVAILABLE" GENERALLY

"A ABOUT

MATERIAL CORPORATION, WERB

FOUND THE MR CHEONG SAID THE AD HOC

WAS "NOT DEFINITION, NAMELY INFORMATION WHICH

BRING ΤΟ AND INFORMATION WHICH WOULD BE CHANGE IN THE PRICE" OF ANY LISTED SECURITIES OF A WIDE AND LACKED CLARITY.

"RELEVANT

INFORMATION"

MIRIAM LAU AND WOULD AFFORD

HE SAID A NEW DEFINITION WOULD BE MOVED BY THE HON

THE

OF SCOPE TO NARROW GREATER CERTAINTY TO THE MARKET.

OF A PERSON MR CHEONG NOTED THAT THE WIDTH OF THE DEFINITION

IN UNEASE "CONNECTED WITH A CORPORATION" UNDER CLAUSE 3 HAD RESULTED

WITHOUT KNOWING THAT ABOUT THE POSSIBILITY OF A PERSON BEING CAUGHT THEY WERE CONNECTED.

TO

APPLIED

IMPORTANT

IMPORTANT TESTS,

PROCEDURAL

THE AD HOC GROUP WAS ASSURED THAT THERE WERE

AND BE AS MOTIVE SAFEGUARDS AGAINST IMPLICATING THE INNOCENT, HE SAID.

SUCH

TEST,

TO THE BILL EXCEPTIONS IN THE

HE SAID THE HON PETER WONG WOULD MOVE AMENDMENTS TO PROVIDE FOR A NUMBER OF ADDITIONAL DEFENCES OR LEGISLATION.

THE

THE LACK OF A CLEAR NEGLIGENT PERSON IN A NEW CONCEPT TO CATER IMPLICATED,

ABOUT CONERN ΤΟ RELATION IN DISTINCTION BETWEEN A TRUE INSIDER DEALER AND A GENERAL, THE ADMINISTRATION HAD PROPOSED TO INTRODUCE

THE BILL, AND TO MAKE PROVISIONS OF AN "INSIDER DEALER" IN

DIRECTOR BEING NEGLIGENT FOR THE CONCERN ABOUT THE ADDED.

HR

THE HYPOTHETICAL FROM A LACK OF INVESTIGATION MADE ΤΟ

MR CHEONG SAID THE AD HOC GROUP FELT MANY OF CASES PRESENTED BY MARKET ORGANISATIONS HAD STEMMED UNDERSTANDING OF THE PROCEDURES TO BE FOLLOWED FOR THE INTO POSSIBLE CASES OF INSIDER DEALING BEFORE A DECISION WAS SET UP A TRIBUNAL.

/IT WAS