XN000022-1994-07-29 — Page 5

FRIDAY, JULY 29, 1994

6,

SECURITIES AND FUTURES COMMISSION (AMENDMENT) ORDINANCE 1994, WHICH CONTAINED THIS PROPOSAL, WAS PASSED INTO LAW ON JULY 1994.

ANOTHER RECOMMENDATION IS THE PROPOSAL TO DO AWAY WITH CERTAIN UNNECESSARY ADMINISTRATIVE REQUIREMENTS FOR A LIQUIDATOR IN ADMINISTERING A LIQUIDATION.

THESE CHANGES HAVE BEEN BROUGHT INTO FORCE BY THE COMPANIES (WINDING UP) (AMENDMENT) RULES 1994 AND THE COMPANIES {AMENDMENT) ORDINANCE 1994.

OF

DRAFT BILLS FOR TWO OTHER RECOMMENDATIONS ON THE PROTECTION AUDITORS TO REPORT SUSPECTED FRAUD AND THE INCORPORATION OF CHARTERED PUBLIC ACCOUNTANTS RESPECTIVELY ARE BEING FINALISED.

OTHER

THE SPOKESMAN ADDED THAT LEGISLATIVE AMENDMENTS ON THREE RECOMMENDATIONS MADE BY THE STANDING COMMITTEE WERE ALSO BEING PREPARED.

"THESE INCLUDE AMENDMENTS TO SECTION 48B (1) OF THE COMPANIES ORDINANCE TO PROVIDE FOR 'MERGER RELIEF IN CASES OF ACQUISITIONS, MERGERS AND RECONSTRUCTIONS, ALONG THE LINES OF SECTIONS 130-134 THE 1985 UK COMPANIES ACT.

OF

"THE SECOND RECOMMENDATION IS TO PERMIT A COMPANY ΤΟ PURCHASE INDEMNITY INSURANCE FOR EITHER ITS AUDTOR OR ANY OF ITS DIRECTORS OR OFFICERS.

"THE THIRD ONE IS ΤΟ REMOVE AN OPPORTUNITY BY A FLOATING CHARGE TO AVOID PRIORITY FOR PREFERENTIAL CREDITORS," HE SAID.

SINCE ITS ESTABLISHMENT IN 1984, THE STANDING COMMITTEE HAS PRODUCED 10 ANNUAL REPORTS.

OF THE TOTAL 52 RECOMMENDATIONS WHICH THE COMMITTEE HAS MADE, 38 HAVE SO FAR BEEN IMPLEMENTED AND A FURTHER SIX ARE INCLUDED IN PROPOSALS FOR LEGISLATIVE AMENDMENTS BEING PREPARED.

COPIES OF THE STANDING COMMITTEE'S REPORT CAN BE OBTAINED FROM THE SECRETARY OF THE STANDING COMMITTEE ON COMPANY LAW REFORM ON TEL 867 2819 OR ON FAX 869 6817 OR 596 0585, OR IN PERSON FROM THE COMPANIES REGISTRY, 15/F, QUEENSWAY GOVERNMENT OFFICES, 66 HONG HÙNG,

QUEENSWAY,

MONETARY STATISTICS FOR JUNE 1994

MAJOR

FOREIGN FOREIGN

FALL IN THE INTEREST RATES OF SOME PROGRESSIVE CURRENCIES CASUED A FURTHER SHIFT OF NON-U.S. DOLLAR CURRENCY DEPOSITS TO HONG KONG DOLLAR AND U.S. DOLLAR DEPOSITS IN JUNE 1994, STATISTICS PUBLISHED TODAY (FRIDAY) BY AUTHORITY SHOWS.

THE

HONG KONG

MONETARY

HONG KONG DOLLAR DEPOSITS HAD MODERATE GROWTH OF 1.4% IN WITH SAVINGS DEPOSITS AND DEMAND DEPOSITS RECORDING SMALL -0.3% AND +1.1% RESPECTIVELY.

JUNE, CHANGES OF

/THE GROWTH