XN000022-1992-04-22 — Page 4

WEDNESDAY, APRIL 22, 1992

- 3

THE

IN THE THE PRINCIPLE ADOPTED

CHINESE ORIGIN

IS RULES SUBSTANTIAL TRANSFORMATION CRITERION. THE LIST OF ORIGIN-CONFERRING MANUFACTURING PROCESSES IS BASED PRIMARILY ON THE "QUALIFYING PRINCIPAL MANUFACTURING PROCESS" APPROACH.

PERFORMED

FOR CHINESE ORIGIN ARE LIST ADOPTED IN THE HONG

BE "IN GENERAL, THE PRINCIPAL PROCESSES REQUIRED TO

CONCERNED IN ORDER TO QUALIFY THE PRODUCTS SIMILAR TO THE CORRESPONDING ONES IN THE KONG SYSTEM, THE SPOKESMAN SAID.

34 PRODUCT THE CHINESE RULES ALSO REQUIRE IN RESPECT OF ABOUT GROUPS THAT THE COST OF IMPORTED PARTS AND MATERIALS SHOULD NOT EXCEED 75 PER CENT OF THE EX-FACTORY PRICE OF THE FINISHED PRODUCT, THUS ENSURING A 25 PER CENT LOCAL CONTENT.

EIGHTH ANNUAL REPORT OF STANDING COMMITTEE ON COMPANY LAW REFORM

THE STANDING COMMITTEE ON COMPANY LAW REFORM HAS SUBMITTED ITS ANNUAL REPORT FOR 1991 TO THE GOVERNMENT.

"AMONG THE SUBJECTS CONSIDERED BY THE STANDING COMMITTEE WAS THE PROPOSED NEW CENTRAL CLEARING AND SETTLEMENT SYSTEM, WHICH IS CONSIDERED BY THE SECURITIES INDUSTRY TO BE REQUIRED URGENTLY IF HONG KONG IS TO MAINTAIN ITS POSITION AS A MAJOR INTERNATIONAL FINANCIAL CENTRE,' A GOVERNMENT SPOKESMAN SAID TODAY (WEDNESDAY).

H

UNDER THE PROPOSAL, ALL THE SHARES IN THE CLEARING SYSTEM WOULD BE REGISTERED IN THE NAME OF THE SYSTEM'S 'COMMON NOMINEE'.

THE SPECIFIC PROPOSALS CONSIDERED BY THE STANDING COMMITTEE INCLUDED AN AMENDMENT TO SECTION 115 OF THE COMPANIES ORDINANCE, WHICH WOULD ALLOW THE RECOGNISED CLEARING HOUSE OR ITS NOMINEE TO AUTHORISE ONE OR MORE CORPORATE REPRESENTATIVES, WHO WOULD IN PRACTICE BE THE BENEFICIAL OWNERS OR

CONTROLLERS OF THE SHARES IN THE SYSTEM, TO ATTEND AND VOTE THE SHARES AT THE GENERAL MEETINGS OF THE LISTED COMPANIES CONCERNED.

"THE STANDING COMMITTER EXPRESSED CONCERN THAT PROPER STEPS SHOULD BE TAKEN TO ENSURE THAT, IN PRACTICE, THIS POWER TO APPOINT REPRESENTATIVES WOULD BE EXERCISED FAIRLY AND EFFICIENTLY, THE

SPOKESMAN SAID.

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"THE STANDING COMMITTEE THOUGHT IT ESSENTIAL FOR THE PROPER GOVERNANCE OF LISTED COMPANIES THAT THE BENEFICIAL OWNERS OR CONTROLLERS OF THE SHARES IN THE SYSTEM SHOULD BE ABLE TO ATTEND VOTE AT GENERAL MEETINGS OF THE COMPANIES CONCERNED, HE SAID.

AND

"THE PACKAGE OF PROPOSED AMENDMENTS WAS INCORPORATED INTO THE SECURITIES (CLEARING HOUSES) BILL 1992."

COMPANIES

IN THE UK, 'DORMANT COMPANIES', WHICH ARE DEFINED AS WITHOUT SIGNIFICANT ACCOUNTING TRANSACTIONS, ARE NOT REQUIRED TO AUDIT THEIR ACCOUNTS.

/"FOLLOWING A