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The application of certain of the existing disqualification provisions is limited to directors of locally-incorporated companies. The Bill will extend their application to directors of overseas companies which carry on business in Hong Kong. The Bill makes various other technical amendments to the Companies Ordinance.

The spokesman said that the Bill should be welcomed by the business community. In particular, the abolition of the ultra vires doctrine would remove an element of uncertainty and risk in commercial dealings, he added.

"If Hong Kong is to remain one of the world's leading international business centres in the 21st century, the legal framework under which companies operate must be responsive to the changing needs of the commercial environment," the spokesman said.

End

Consultancy study on employees retraining commissioned

The Secretary for Education and Manpower, Mr Joseph W P Wong, today (Thursday) signed an agreement with a consultancy firm to conduct a comprehensive review of the Employees Retraining Scheme.

The main objectives of the review are:

(a)

(b)

(c)

to review the management structure of the Employees Retraining Board and to advise on changes necessary to improve its effectiveness in discharging its functions;

to review the current mode of operation of the Employees Retraining Scheme and to explore other alternatives which may replace or supplement the existing system; and

to assess the effectiveness of the various types of retraining courses in meeting the requirements of employers and the retraining needs of local workers.

The consultancy study is expected to be completed in August. An inter- departmental steering group led by the Deputy Secretary for Education and Manpower, Mr Matthew Cheung Kin-chung, has been formed to provide policy guidance and to monitor the progress of the consultancy study.