XN000022-1991-04-18 — Page 13

THURSDAY, APRIL 18, 1991

12

SECURITIES (DISCLOSURE OF INTERESTS) (AMENDMENT) BILL 1991 TO BE PUBLISHED

TAF

F

THE (FRIDAY)

SM RITIES PROPOSES TO

TO OVERSEAS

GOVERNMENT WILL PUBLISH TOMORROW (DISCLOSURE OF INTERESTS) (AMENDMENT) BILL 1991, WHICH

PRINCIPAL THE APPLICATION EXTEND COMPANIES LISTED ON THE STOCK EXCHANGE OF HONG KONG.

OF THE

ORDINANCE

"AT PRESENT, THE ORDINANCE APPLIES ONLY LISTED IN HONG KONG, A GOVERNMENT SPOKESMAN SAID.

H

"IT HAS ALWAYS BEEN OUR

ΤΟ

LOCAL

COMPANIES

THE DISCLOSURE THAT INTENTION

ΤΟ OFFICERS AND THE ORDINANCE SHOULD ALSO APPLY OBLIGATIONS UNDER SUBSTITIAL SHAREHOLDERS OF OVERSEAS COMPANIES LISTED IN HONG KONG

PO PROTECT DO AL INVESTOPS.

ORDER

"WE HAVE UNDERTAKEN NOT TO BRING THE ORDINANCE INTO FORCE UNTIL THIS IS DONE, HE SAID.

"

TO

ORDINANCR SCOPE OF THE AS A CONSEQUENCE OF EXTENDING THE EMBRACE OVERSEAS COMPANIES LISTED IN HONG KONG, THE BILL ALSO PROPOSES TO AMEND THE FREEZING ORDER PROVISIONS TO RECOGNISE THE NEED FOR EQUAL AND TO GIVE THE SECURITIES TREATMENT OF LOCAL AND FOREIGN COMPANIES,

COMPANIES FROM THE AND FUTURES COMMISSION POWER TO EXEMPT CERTAIN

ORDINANCE.

SHARES MAY

**IF AN INVESTIGATION INTO THE OWNERSHIP OF A COMPANY'S NEETS WITH OBSTRUCTION, THE FINANCIAL SECRETARY OR THE HIGH COURT

RESTRICTIONS, ORDER THAT THE SHARES IN QUESTION BE SUBJECT TO CERTAIN

THE SPOKESMAN SAID. COMMONLY KNOWN AS A 'FREEZING ORDER',

"THESE RESTRICTIONS OPERATE TO FREEZE THE TRANSFER, EXERCISE OF VOTING RIGHTS, PAYMENT OF DIVIDENDS AND BONUS ISSUES IN RESPECT OF THE SHARES OF A DEFAULTING SHAREHOLDER.

"HOWEVER, WITH THE EXCEPTION OF THE RESTRICTION ON TRANSFERS IN A HONG KONG, THESE PROVISIONS CANNOT BE ENFORCED IN PRACTICE AGAINST

TO RETAIN FOREIGN COMPANY. WE THINK IT UNNECESSARY AND UNDESIRABLE THEM FOR LOCAL COMPANIES ONLY.

"WE

BELIEVE THAT

THE TRANSFER OF SHARES A RESTRICTION ON

EFFECTIVF REGISTERED IN HONG KONG SHOULD, BY ITSELF, BE ADEQUATE AND

BUT ABOVE ALL, IN MOST CASES TO ACILLEVE THE PURPOSE OF THE ORDINANCE. WE MUST AIM TO PROVIDE A LEVEL PLAYING FIELD,

ON "THE BILL PROPOSES, THEREFORE, TO APPLY ONLY A RESTRICTION TRANSFER OF SHARES REGISTERED IN HONG KONG, TO ALL COMPANIES LISTED IN HONG LONG.

"WE BELIEVE THAT, AS A GENERAL RULE, THE ORDINANCE SHOULD APPLY THAT HOWEVER, WE ALSO BELIEVE TO ALL COMPANIES LISTED IN HONG KONG.

TO BASE THE RELIEF MAY BE JUSTIFIED IN CERTAIN CASES, FOR EXAMPLE

THE MUCH WILL DEPEND UPON BURDEN OF DUPLICATE FILING REQUIREMENTS. CIRCUMSTANCES OF EACH CASE.

/"THE BILL