TNAG-1732-FCO40-2445-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 78

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J

per cent be more appropriate.

percent

While a figure of 5 would be more in

line with international practice, I am not in favour of any

present proposal at this stage. Any change change in the present proposal at to this key provision would require further

consultation and

and would unavoidably delay the passage

extensive

of

been under this important piece of legislation which has

I believe that 18 is a discussion since the early 1970s.

for Hong suitable initial trigger point for disclosure

that a

in

Kang, bearing in mind

company may itself require

any be disclosed in relation to information to be disclosed

shareholding. We will review this provision in the light

of experience of the operation of

level of

the Bill and in the

course of our consideration of the recommendations of the

Securities Review Committee.

The third

nominee companies concerns

and in

particular whether OF not a bank's nominee company would

qualify as a bare trustee for the purposes

for the purposes of exemption.

It is common practice in Hong Kong for a nominee company,

its customer, in the absence of written instructions from

to

have

no duty

than duty other

beneficiary's order

to hold

the property

to

the

but

to

reserve

power to

vote

in

A

whichever way it considers to be in its beneficiary's customer's best interests. Our legal advice is that such a

discretionary voting power does not prevent a company which

offits

is otherwise a

bare trustee

nominee or

trustée or nominee.

from being a

bare