15
WEDNESDAY, MAY 1, 1991
FUTURES HE POINTED OUT THAT IN JANUARY 1990 THE SECURITIES AND COMMISS CON AND THE STOCK EXCHANGE ISSUED FOR PUBLIC CONSULTATION JOINT PROPOSALS TO PERMIT COMPANY SHARE REPURCHASES IN HONG KONG.
"THESE PROPOSALS WHICH RECEIVED BROAD SUPPORT IN THE FOLLOW CLOSELY THOSE IN THE UK COMPANIES ACT, MR MACLEOD SAID.
"IT IS GENERALLY ACCEPTED THAT THE OPTION OF A COMPANY
18
WORK A USEFUL FINANCIAL TOOL AND CAN REPURCHASE SCHEME BENEFIT OF COMPANIES AND SHAREHOLDERS.
MARKET
SHARE ΤΟ THE
"AMONG OTHER THINGS, IT ENABLES A COMPANY TO RETURN SURPLUS CASHI
PERIODS OF TO ITS SHAREHOLDERS, SUPPORT ITS SHARE PRICE DURING TEMPORARY WEAKNESS AND PREVENT OR INHIBIT UNWELCOME TAKEOVER BIDS, SAID.
** HE
COMPANY LAW
MR MACLEOD SAID WITH A FEW TECHNICAL AMENDMENTS, THE PROPOSALS WERE SUBSEQUENTLY ENDORSED BY THE STANDING COMMITTEE ON REFORM IN JUNE 1990.
THAT AN
SOME OF THE SALIENT FEATURES OF HIGHLIGHTING
THE BILL, THE ACTING FINANCIAL SECRETARY SAID: "FIRST, THE BILL PROVIDES UNLISTED COMPANY MAY PURCHASE IT'S OWN SHARES UNDER A CONTRACT AUTHORISED IN ADVANCE BY A SPECIAL RESOLUTION OF THE COMPANY.
OF THE CONTRACT OR A WRITTEN MEMORANDUN OF A COPY MUST BE AVAILABLE FOR INSPECTION BY MEMBERS OF THE COMPANY AND AT THE MEFTING AT WHICH THEY AUTHORISE THE REPURCHASE.
"SECONDLY,
ITS TERMS PRIOR TO
THE BILL PROVIDES THAT A LISTED COMPANY MAY PURCHASE ITS OWN SHARES IN ACCORDANCE WITH THE SHARP REPURCHASE CODE ISSUED AN]) ADMINISTERED BY THE SECURITIES AND FUTURES COMMISSION.
ESSENTIALLY
THE
1
PF
וין
WAY
TO
ALL
TO
APPROACH 18 *10 REQUIRE COMPANY SHARE
[ REPURCHASES.
ACHIEVED
of
OFFER A GENERAL SUAREHOLDERS IN ACCORDANCE WITH MILES SIMILAR TO THOSE APPLICABLE TAKROVER BIDG.
"THE
REQUIREMENT
FOR
LISTED
COMPANIES
T0
OBTAIN
PRIOR THR LISTING
SHAREHOLDER APPROVAL APPEARS IN THE REPURCHASE CODE AND RULES, AND NOT IN THE BILL.
+
THIS DEPARTURE FROM THE UK APPROACH IS INTENDED TO PROVIDE THE SINCE THE SECURITIES NECESSARY FLEXIBILITY IN TIMES OF MARKET CRISIS,
WAIVR AND FUTURES COMMISSION AND THE STOCK EXCHANGE HAVE THE RIGHT TO
THE CODE SUCH
RI AND THE LISTING PULFS UNDER REQUIREMENTS WARRANTED BY PXCEPTIONAL CIRCUMSTANCES,
1
WH
MAY
“THIRDLY,
NON-STATUTORY THE
SHARE REPURCHASE CODE AND THE COMPANY LISTING RULES ARE GIVEN STATUTORY BACKING FOR THE PURPOSE OF SHARE REPURCHASES.
"FAILURE
ΤΟ
COMPLY
WITH THE CODE AND THE
LISTING
RULES
IN
AS
RESPECT OF SHARE REPURCHASES WILL THUS ATTRACT THE SAME PENALTIES FAILURE TO OBSERVE THE PROVISIONS OF THE BILL.
"LASTLY, REPURCHASED
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