TNAG-1764-FCO40-2518-Hong-Kong-stock-market-and-exchange-rate-1988 — Page 40

THE STOCK EXCHANGE

CONSTITUTION AND MANAGEMENT

(Chapter Four of the Report)

The SRC recommends that

1.

2.

3.

4.

5.

6.

7.

8.

The SEHK Articles of Association should be amended to remove all profit provisions and to specify in clear terms that the SEHK is a non-profit-making company. (para. 4.18)

the name of the SEHK governing body should be changed from "Committee" to "Council". (para. 4.28)

the SEHK Articles of Association should be amended to remove the bar against corporate representation on the Council. (para. 4.34)

directors of corporate members should be eligible to stand for election. (para. 4.36)

there should be non-brokers on the Council, of whom at least one should be a senior officer of a listed company and at least one should be a senior officer of a fund management company. (para. 4.37)

independent members should be co-opted by the SEHK Council after consultation with the regulatory authority. (para. 4.40)

the Chief Executive should be a full voting member of the Council. (para. 4.42)

the Articles of the SEHK should be amended to require that the Council be broadly based and representative of the market and that the proportion of representation in the Council should be

(a)

(b)

(c)

eight reserved places : four each for individual and corporate members put forward by a Nominating Committee and elected by members of the SEHK;

eight floating places to be filled by individual or corporate candidates nominated by members

(in due course) a Nominating Committee and elected by members of the SEHK;

or

five co-opted independent members of whom at least one should be a director of a listed company and one a fund

manager; and

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