TNAG-1732-FCO40-2445-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 77

· 3 -

made,

In

Finally, it enables the courts or, in certain

cases, the Financial Secretary to place restrictions on the

transfer or disposal of shares. Where a freezing order is

any transfer of the shares concerned is void.

addition, по voting rights are exercisable in respect of

the shares and no dividends are payable. An order may only

be lifted by the relevant authority when certain conditions

have been met.

сар

sir,

as I have said, most of the comments received

during the consultation exercise centred on technical

provisions in the white bill. A few points, however, were

三

=

of wider importance. The first concerns the application of

the Bill. While we agree in principle that the Bill should

apply to all Hong Kong listed companies, both locally and

Overseas incorporated, there are practical and

extra-territorial problems in applying the legislation to

therefore,

United Kingdom

to follow the UK practice,

overseas companies. We prefer, to

5/20

which is to limit the application of

of the legislation to

local companies but to require all

to require all listed companies, both

local and overseas, to comply with its provisions as a

listing requirement. The necessary amendments to

Securities (Stock Exchange Listing) Rules are in hand.

the

for

cent

per

substantial

The second concerns the notifiable percentage for

shareholders. In the Bill, shareholdings of

108) or more must be notified. The view that this figure is

too high has been expressed by some, most recently by the

cent Securities Review Committee, and that a figure of 5 would