The Administration has been in discussion with the Management Committee since the proposals were first put forward and is satisfied that the proposals are in line with the spirit of the SRC recommendations.
9
Voluntary amendment of the Memart by members of the Exchange to implement the SRC recommendations has the distinct advantage of signifying to both the local and overseas investing communities that the SEHK is fully co-operative in reconstituting its governing body. Such an approach would also significantly shorten the time required to produce the first Council. (If legislation were required, the Council might not be in place until the end of the year.) Also, allowing the SEHK to pursue its reconstitution at
at its own initiative should encourage members to be more co-operative with
with the Government implementing other recommendations in the SRC Report.
10
its
in
We therefore propose that the Government's response
should be as outlined in paragraph 2.
Financial and Staffing Implications
12
These
implications.
proposals carry no financial Or staffing
Consultation
13
The Financial Secretary has stated that public comments are welcome and that they should submit such comments by 4 July 1988. Probably because of the wide ranging consultation the SRC has already had with various organizations and individual members of the public, little comment on the reconstitution of the SEHK in the form of formal submissions has been received.
The press has generally supported the thrust of the recommendations, most with the recommendation that Government should proceed with their speedy implementation.
14
The changes to the Memart proposed by the SEHK were endorsed by the Securities Commission at its meeting held on 23 June 1988.
Public Reaction
15
expected
The investing public, both local and overseas, are
welcome
Government's endorsement of the
to
the
CONFIDENTIAL
No comments yet.
Private notes are available after approval.