TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 100

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Annnex C

Extract from the Report of the Securities Review Committee

Governing body

9.37.

Given the breadth of its operations, it would be inappropriate to vest the powers and responsibilities in a

would He

be both too powerful even with the Exchanges undertaking

single person.

undesirably stretched,

much of the day-to-day supervision.

We

and

recommend that the new SC should be governed by preferably with seven members: a chairman, two other full-time directors and three

small board,

9.38.

a

deputy

chairman,

non-executive directors.

9.39.

While

carrying

management

the of

full

responsibility

for the

Commission, the four full-time SC board

directors should not be too closely involved in detailed

day-to-day business,

although of

necessity they would be

close to major issues. They must be free to see the wood

to

for the trees, to

departments and

policies.

The

manage

the

agency

and its

various

steer a course based on a clear set of therefore fall to

day-to-day

Work

would

their supporting staff.

9.40.

We see а role for non-executive directors on the board to keep the full-time directors on their toes and to

an

independent

eye

to

the

They

bring

SC's management. should take а primary interest in the areas of management

and

organisation,

rather than

and policy

operational and would not therefore need securities market be actively ΟΙ expertise. involved in the securities industry.

supervision

experience

They

should not

9.41.

Given

the considerable commercial sensitivity of

the

hon-executive directors

the information in the SC,

should not have an automatic right to see sensitive papers

on individual cases.

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