WEDNESDAY, MARCH 20, 1991
ΤΟ COMPANIES FOR LISTED REQUIREMENT "THE SHAREHOLDER APPROVAL APPEARS IN THE REPURCHASE CODE AND RULES," THE SPOKESMAN EXPLAINED.
PRIOR
OBTAIN
THE LISTING
"THIS IS INTENDED TO PROVIDE THE NECESSARY FLEXIBILITY IN TIMES THE OF MARKET CRISIS, SINCE THE SECURITIES AND FUTURES COMMISSION AND STOCK EXCHANGE HAVE THE RIGHT TO WAIVE ANY OF THE REQUIREMENTS
BY EXCEPTIONAL BE WARRANTED THE
AND
THE
CODE CIRCUMSTANCES.
RULES
AS MAY
UNDER
"WHILE THE SHARE REPURCHASE CODE AND THE LISTING RULES ARE NON-
BE INSTRUMENTS
GIVEN STATUTORY WE
THAT THESE STATUTORY,
PROPOSE BACKING FOR THE PURPOSE OF COMPANY SHARE REPURCHASES.
LISTING
RULES IN
AS
"FAILURE ΤΟ COMPLY WITH THE CODE AND THE RESPECT OF SHARE REPURCHASES WILL THUS ATTRACT THE SAME PENALTIES FAILURE TO OBSERVE THE PROVISIONS OF THE BILL.
"THESE
IN
PROVISIONS RENDER A COMPANY AND ITS OFFICERS ACTING
Tr THE SPOKESMAN CONTRAVENTION LIABLE TO HEAVY FINES AND IMPRISONMENT,
SAID.
PROVISION
THE BILL ALSO DEALS WITH THE RELATED SUBJECT OF THE BY A COMPANY OF FINANCIAL ASSISTANCE TO A THIRD PARTY FOR THE PURCHASE OF THAT COMPANY'S SHARES.
IT CLARIFIES THE MEANING OF "FINANCIAL ASSISTANCE" AND A GENERAL PROHIBITION ON THE PROVISION OF IT.
HOWEVER, THE PROHIBITION IS SUBJECT TO A NUMBER OF ESPECIALLY IN THE CASE OF UNLISTED COMPANIES.
IMPOSES
EXCEPTIONS,
OF DISTRIBUTABLE
LASTLY, THE BILL ALSO ADDRESSES THE SUBJECT PROFITS, WHICH IS CLOSELY CONNECTED WITH SHARE REPURCHASES.
STATUTORY
PROVISION GOVERNING
THE THERE ARE
THERE IS AT PRESENT NO DISTRIBUTION
COMPANY TO ITS SHAREHOLDERS ALTHOUGH BY A ACCEPTED PRINCIPLES AND PRACTICES GOVERNED BY COMMON LAW.
EXISTING
THE BILL INTRODUCES PROVISIONS WHICH SERVE TO CODIFY
OF DISTRIBUTABLE GOOD ACCOUNTING PRACTICE. A STATUTORY DEFINITION
POSITION OF PROFITS IS DESIRABLE IN ITSELF AND WILL STRENGTHEN THE
AS SINCE,
AN ESSENTIAL CREDITORS IN
OF REPURCHASES THE CONTEXT SAFEGUARD, THE BILL PROVIDES THAT REPURCHASES CAN ONLY BE MADE OUT DISTRIBUTABLE PROFITS.
OF
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