XN000022-1992-07-17 — Page 7

FRIDAY, JULY 17, 1992

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GUIDELINES ON SECURITIES PROSPECTUS

* * *

(FRIDAY) THE

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AND

REGISTRY TODAY THE COMPANIES A CIRCULAR ISSUED BY CONTAINS A STATEMENT OF GUIDELINES SETTING OUT, IN GENERAL TERMS

WILL INTERPRET OF COMPANIES PRINCIPLES ON WHICH THE REGISTRAR

SOUGHT TO BE APPLY CERTAIN PROVISIONS RELATING TO PROSPECTUSES

ORDINANCE FOR SHARES OR REGISTERED UNDER PART XII OF THE COMPANIES

INCORPORATED DEBENTURES

CHINA COMPANIES, OUTSIDE HONG KONG.

IN

COMPANIES,

INCLUDING

THE REGISTRAR GENERAL, MR NOEL

RECOMMENDATIONS

INCLUDED

THE

OF

THE HONG

GLEESON,

SAID GROUP

THE

GUIDELINES

OF A

COMPOSED OF WORKING

THE OF ACCOUNTANTS, KONG SOCIETY REPRESENTATIVES

EXCHANGE OF HONG KONG SECURITIES AND FUTURES COMMISSION, THE STOCK (SEHK) AND THE COMPANIES REGISTRY, WHICH HE HAD CHAIRED.

HE BELIEVED THE RECOMMENDATIONS FAIRLY REFLECTED THE THOSE BODIES.

COMPANIES

VIEWS OF

ORDINANCE,

UNDER THE HONG KONG HE RECALLED THAT

OF INVESTORS, IT WAS WHICH CONTAINED PROVISIONS FOR THE PROTECTION

BY WAY OF A UNLAWFUL TO OFFER SHARES FOR SALE TO THE PUBLIC EXCEPT PROSPECTUS REGISTERED IN THE COMPANIES REGISTRY AND THAT A COULD NOT BE SO REGISTERED UNLESS IT CONTAINED CERTAIN AND STATED THE MATTERS AND SET OUT THE AUDITOR'S REPORT ON THE PROFITS AND LOSSES AND ASSETS AND OF THE COMPANY, SPECIFIED IN THE ORDINANCE AND ITS THIRD SCHEDULE.

PROSPECTUS INFORMATION REPORTS, INCLUDING AN LIABILITIES

FACT THE WORKING GROUP'S RECOMMENDATIONS RELATED MAINLY TO THE

AND AUDITING PRACTICES AND THAT SOME COUNTRIES HAD ACCOUNTING

AND THOSE THAT STANDARDS WHICH WERE DIFFERENT TO THOSE OF HONG KONG WERE ACCEPTED INTERNATIONALLY.

DEALT THEREFORE WITH THE RECOMMENDATIONS

THE PROFESSIONAL REQUIRED UNDER THE QUALIFICATIONS OF THE AUDITORS MAKING THE REPORT THIRD SCHEDULE OF THE ORDINANCE, THE FORM IN WHICH THE ACCOUNTS SHOULD

THE PERIOD

PERIOD COVERED BY BE STATED, WHAT THE ACCOUNTS SHOULD CONTAIN,

IN THE AUDITOR'S REPORT THE ACCOUNTS, THE OPINIONS TO BE EXPRESSED AND QUALIFICATIONS OF THE ACCOUNTS CONTAINED IN THE AUDITOR'S REPORT.

TAX

AND IN

AND DEALT ALSO THE GUIDELINES INCLUDED THOSE RECOMMENDATIONS

WERE OTHER SPECIAL FACTORS, WITH THE FACT THAT IN SOME CASES THERE

THE JUDICIAL LAWS, INCLUDING EXCHANGE CONTROL,

WHICH OR

SHOULD POLITICAL

ECONOMIC RISKS, PROSPECTUSES SO THAT POTENTIAL INVESTORS IN HONG PROPERLY INFORMED INVESTMENT DECISION.

SYSTEM MENTIONED KONG COULD MAKE A

BE

REGARDED AS GUIDELINES WHICH A

MR GLEESON EXPLAINED THAT THE GUIDELINES COULD BE NO MORE THAN WHAT THEY WERE INTENDED TO BE, THAT IS WOULD HELP THE REGISTRAR OF COMPANIES SO THAT, AS FAR AS POSSIBLE, CONSISTENT APPROACH TO THE REGISTRATION OF PROSPECTUSES

INCORPORTAED OUTSIDE FETTERING THE EXERCISE

HONG

COULD BE KONG

STATUTORY OF HIS

DEVELOPED DISCRETION

OF COMPANIES BUT WITHOUT IN INDIVIDUAL

CASES.

/THE GUIDELINES