TNAG-1765-FCO40-2519-Hong-Kong-stock-market-and-exchange-rate-1989 — Page 22

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Nominating Committee and Board of Directors

4.

A Nominating Committee is to be established comprising an Independent Director, two members of the Exchange and a third party. Its primary responsibility is to propose candidates for election to the eight posts of member Director on the Board. The first members of the Nominating Committee

(Articles 55-59) are to be appointed by the Governor.

5.

The interests on the Board are to be much more broadly based. There will be four Independent Directors whose main role will be to represent the public interest and the interest

The first four Independent of the users of the market. Directors are to be appointed by the Governor, thereafter they will be co-opted by the Board. Apart from the four Independent Directors on the Board, there will be eight member Directors plus the Chief Executive who will hold his directorship ex officio. Thus a total of 13 Directors on the Board.

661

(Article

6.

After a period of three years, it shall be open to a member to propose competing candidates as member Directors of the Board. (Article 70(a))

Chairman and Vice-Chairman

7.

The Chairman of the Board is to be elected by the

office is one year Board from amongst its members.

His term of

There are to be

and he is eligible to be re-appointed twice. two Vice-Chairmen elected by the Board one of whom is to be an Independent Director of the Board unless the Chairman himself is an Independent Director. (Articles 79-83)