TNAG-1725-FCO40-2438-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 129

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HONG KONG LEGISLATIVE COUNCIL — 20 January 1988

breach of the duty of confidentiality owed by a bank to its customer. Some members of the banking community are also concerned that foreign banks operating in Hong Kong, which are not subject to such strict disclosure requirements, have an unfair advantage over local institutions.

In the light of representations received, we have reviewed the matter and sought the advice of the Standing Committee on Company Law Reform. We accept the importance of banking confidentiality, but consider that in general the principle of disclosure of detailed information to the public should apply to banks as it applies to other companies. So the proposed amendments to section 161B are designed to achieve the primary objective of the banks in relation to the annual accounts whilst maintaining the general principle of disclosure of relevant information to the public.

Clause 3 of the Bill provides a limited exemption for authorised financial institutions and their holding companies from disclosing details of loans to directors and other officers in their annual accounts. Instead, the accounts will contain information on the aggregate figures of such loans. This exemption, however, does not apply to a loan or guarantee in excess of HK$10 million where that loan or guarantee is made or given on concessionary terms. As I have already indicated the public interest in disclosure is served by clause 4 of the Bill, which requires that the information be made available for general inspection for a limited period both before and after the annual general meeting of the company.

Sir, I move that the debate on this motion be now adjourned.

Motion made. That the debate on the Second Reading of the Bill be adjourned.

Question put and agreed to.

MEDICAL REGISTRATION (AMENDMENT) BILL 1987

Resumption of debate on Second Reading (9 December 1987)

Question proposed.

DR. IP: Sir, the Medical Registration (Amendment) Bill 1987 before us will allow the Director of Medical and Health Services to relinquish his position as Chairman of the Medical Council. This is, Sir, a right step to reduce government intervention in regulating the medical profession. However, while speaking in support of the Bill, I am dissatisfied that it has not gone far enough.

At present, the various governing bodies of different professions, such as the legal, engineering and surveying professions, are composed of members elected amongst their fellow member whereas their counterparts in the Medical Council are all appointed.