XN000022-1991-05-01 — Page 13

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WEDNESDAY, MAY 1, 1991

"THESE ARE INTENDED TO HELP THE FROZEN SHARES TO BE TRACED HONG KONG AND TO INHIBIT THE REGISTRATION OF TRANSFERS OVERSEAS, ACTING FINANCIAL SECRETARY SAID.

IN

THE

"UNDER PROPER ACCOUNTING PRINCIPLES AND SUBJECT TO THE COMPANY LAW OF THE PLACE OF INCORPORATION, SHARES OF AN OVERSEAS COMPANY MUST FIRST BE REMOVED FROM THE BRANCH REGISTER IN HONG KONG BEFORE A TRANSACTION INVOLVING THE SAME SHARES CAN BE REGISTERED ON THE PRINCIPAL REGISTER OVERSEAS.

"SECONDLY, A LISTED COMPANY AND ITS OFFICERS WHO ACT IN CONTRAVENTION OF THE PROPOSED RESTRICTIONS ON REGISTRATION, ISSUE, CANCELLATION AND REMOVAL OF SHARES COMMIT AN OFFENCE AND ARE LIABLE UPON CONVICTION TO THE SAME PENALTIES AS THE DEFAULTING SHAREHOLDER WHO ATTEMPTS TO EVADE THE RESTRICTIONS," HE SAID.

MR MACLEOD NOTED THAT THE SECURITIES (DISCLOSURE OF INTERESTS) ORDINANCE WAS ENACTED IN JULY 1988, BUT HAD YET TO BE BROUGHT INTO FORCE.

"IN

THE INTERESTS OF EQUITY AND INVESTOR PROTECTION, WE HAVE UNDERTAKEN NOT ΤΟ BRING THE ORDINANCE INTO FORCE UNTIL ITS REQUIREMENTS WERE ALSO MADE APPLICABLE TO OVERSEAS COMPANIES LISTED IN HONG KONG,

"SUBJECT TO THE ENACTMENT OF THIS BILL NOW BEFORE THIS COUNCIL, IT IS OUR INTENTION TO BRING THE PRINCIPAL ORDINANCE INTO OPERATION ON 1 AUGUST 1991, HE ADDED.

DEBATE ON THE BILL WAS ADJOURNED.

TRADE DESCRIPTIONS BILL INTRODUCED INTO LEGCO

A BILL WHICH SEEKS TO AMEND THE TRADE DESCRIPTIONS ORDINANCE TO PERMIT THE DIRECTOR-GENERAL OF TRADE ΤΟ SPECIFY THE PLACE OF MANUFACTURE OR PRODUCTION OF CERTAIN GOODS, SUBJECT TO A SPECIAL LICENSING SCHEME, WAS INTRODUCED INTO THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE TRADE DESCRIPTIONS (AMENDMENT) BILL 1991, THE ACTING FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, POINTED OUT THAT UNDER THE BILL, THE DIRECTOR-GENERAL WOULD HAVE THE POWER TO SPECIFY, BY NOTICE IN THE GAZETTE, THE KIND OF GOODS ΤΟ BE COVERED UNDER SUCH A SCHEME.

HE SAID THESE AMENDMENTS WERE DESIGNED TO ENABLE US ΤΟ DEAL WITH A PARTICULAR PROBLEM RELATING TO PIECE-KNITTED GARMENTS, WHICH INVOLVED TWO MAJOR STEPS: THE KNITTING OF KNIT-TO-SHAPE PANELS, AND THE LINKING-AND-LOOPING OF SUCH PANELS INTO FINISHED PRODUCTS.

/"IN HONG