TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 148

Annex A

Summary of SRC recommendations in respect of the constitution of the SEHK

Status of Exchange

1. 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 of the SRC Report).

Council and its composition

2.

3.

4.

* The name of the SEHK governing body should be changed

from "Committee" to "Council" (para. 4.28).

*

*

The

bar against corporate representation on the Council should be removed; directors of corporate members should be eligibile to stand for election (paras. 4.34 and 4.36).

Non-brokers should sit on the Council of whom at least one should be a senior officer of a listed company and all should be co-opted by the SEHK Council after consultation with the regulatory authority (para. 4.38

4.40).

and

5. The Chief Executive should be full voting member of the

Council (para. 4.42).

6.

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

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

(d) the Chief Executive - ex officio.

Should the size of the Council were to change in future

the

balance proportional

(para. 4.49).

should remain the same