TNAG-0561-FCO40-656-Review-of-narcotics-problem-in-Hong-Kong-1975 — Page 66

CONFIDENTIAL

D. FROM OCTOBER 1975 THE RELEVANT HONG KONG LAW WILL BE SIMILAR

TO THAT IN BRITAIN, BUT WITH SOME VARIATIONS. THESE RELATE MAINLY TO PRIVATE COMPANIES, WHICH WITH SOME EXCEPTIONS NEED. NOT COMPLY WITH THE NEW ACCOUNTING PROVISIONS, AND TO THE DISCLOSURE OF DIRECTORS' INTERESTS, WHERE THE REQUIREMENTS

ARE LESS DETAILED,

E. THREE STATION SERGEANTS, FOUR SERGEANTS, AND ONE POLICE CONSTABLE HAVE FAILED TO REPORT FOR DUTY FOLLOWING THE

COMMENCEMENT OF INVESTIGATIONS BY THE INDEPENDENT COMMISSION

AGAINST CORRUPTION.

F. THE ROYAL HONG KONG POLICE FORCE IS NOT EQUIPPED WITH DM GAS.''

2. AS REGARDS ANSWER C, THE BACKGROUND IS THAT FOLLOWING THE.

NEWS THAT THE CHAIRMAN AND SOME OTHER DIRECTORS HAD LEFT THE

BOARD OF THE PAUL LEE ENGINEERING CO LTD AND THAT CERTAIN

IRREGULARITIES HAD BEEN DISCOVERED IN THE ACCOUNTS, ON 22 AUGUST 1974 THE STOCK EXCHANGES, AT THE REQUEST OF THE COMPANY, SUSPENDED TRADING IN THE COMPANY'S SHARES, IN OCTOBER 1974, IT APPEARED THAT THERE WERE CIRCUMSTANCES SUGGESTING THAT PERSONS CONCERNED WITH MANAGING THE COMPANY'S AFFAIRS HAD BEEN GUILTY OF FRAUD, MISFEASANCE OR OTHER MISCONDUCT TOWARDS THE COMPANY OR ITS

· MEMBERS: OR THAT ITS MEMBERS HAD NOT BEEN GIVEN ALL THE INFORMATION WITH RESPECT TO ITS AFFAIRS THAT THEY MIGHT REASONABLY EXPECT. ACCORDINGLY, ON 24 OCTOBER 1974 THE FINANCIAL SECRETARY APPOINTED INSPECTORS TO INVESTIGATE THE AFFAIRS OF THE COMPANY IN ACCORDANCE WITH SECTION 143 OF THE COMPANIES ORDINANCE. MEANWHILE, ON THE GROUNDS THAT THE COMPANY HAD FAILED TO PROCEED WITH THE WORKS UNDER THE CONTRACTS WITH DUE DILIGENCE, ON 22 OCTOBER

1974 THE GOVERNMENT DECIDED TO ENTER ALL THE CONTRACTS WHICH THE

COMPANY WAS UNDERTAKING FOR THE GOVERNMENT. THESE CONTRACTS

CONSTITUTED VIRTUALLY THE WHOLE OF THE COMPANY'S PORTFOLIO OF WORKS. FROM THE INTERIM REPORT MADE AT THE DIRECTION OF THE

FINANCIAL SECRETARY BY THE INSPECTORS, IT APPEARED TO THE

FINANCIAL SECRETARY THAT THE COMPANY SHOULD BE WOUND UP. ON 6

NOVEMBER 1974 HE SIGNED A PETITION THAT THE COMPANY MIGHT BE

WOUND UP BY THE COURT UNDER THE PROVISIONS OF THE COMPANIES ORDINANCE. A WINDING UP ORDER WAS MADE BY THE COURT ON 3 FEBRUARY

1975.

2.

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13.