TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 21

Outline of New Items of Substance in the

Revised Memorandum and

Articles of Association and

Rules of HKFE

Annex A

Increase in Authorised Capital and Share Consolidation

The authorised capital of HKFE is to be increased from $35 million to $70 million by the creation of 350 ordinary shares of $100,000 each. Additionally, 364 unissued standard shares of $25,000 are each to be consolidated and redesignated as 91 unissued ordinary shares of $100,000 each (see the draft notice of EGM at part 9).

Payment of Dividends

2.

Dividends will no longer be capable of being paid to shareholders. This will not, however, prevent HKFE continuing to generate profits which will be applied to the development and expansion of the Exchange. (Articles 113 and 114)

Shareholders who are not Members

3.

Shareholders who are not members shall be required to

Should a sale not use their best efforts to sell their shares. eventuate, then the Directors are empowered to conclude a sale on behalf of the shareholder. In recognition of a possible scarcity of demand, the Directors are not authorised to impose any time limit in relation to such compulsory transfer. Additionally, a shareholder who is not a member is not

permitted to vote.

(Articles 17 and 37)