TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 46

SECURITIES (DISCLOSURE OF INTERESTS)

Ord. No. 63/88

A363

(2) The appointment of an inspector under this section may define the scope of the investigation (whether as respects the matter or the period to which it is to extend or otherwise) and in particular may limit the investigation to matters connected with particular shares or debentures.

(3) If application for an investigation under this section with respect to particular shares or debentures of a listed company is made to the Financial Secretary by members of the listed company, and the number of applicants or the number of shares held by them is not less than the number required for an application for the appointment of inspectors under section 142(1) of the Companies Ordinance-

(a) the Financial Secretary shall appoint an inspector to conduct the investigation (unless he is satisfied that the application is vexatious); and

(b) the inspector's appointment shall not exclude from the scope of the investigation any matter which the application seeks to have included, except in so far as the Financial Secretary is satisfied that it is unreasonable for that matter to be investigated.

(4) Subject to the terms of his appointment, an inspector's powers extend to the investigation of any circumstances suggesting the existence of an arrangement or understanding which, though not legally binding, is or was observed or likely to be observed in practice and which is relevant to the purposes of the investigation.

(5) The Financial Secretary may, before appointing an inspector, require the applicant or applicants to give security, to an amount not exceeding $50,000, or such other sum as may be prescribed by regulations, for payment of the costs of the investigation.

34. (1) If it appears to the Financial Secretary that there are circumstances suggesting that contraventions may have occurred in relation to a listed company's shares or debentures, of section 28 (taken with the Schedule), or of section 31(3) to (5) he may appoint one or more competent inspectors to carry out such investigations as are requisite to establish whether or not such contraventions have occurred and to report the result of their investigations to him.

(2) The appointment of an inspector under this section may limit the period to which the investigation is to extend or confine it to shares or debentures of a particular class, or both.

(Cap. 32)

Investigation of share dealings 1985 c. 6, s. 446 Schedule

lef. 1985 c. 6,

s. 443]

35. (1) If an inspector appointed under section 33 or 34 thinks it Inspector's necessary for the purposes of his investigation to investigate also the powers during

investigation ownership of any shares in or debentures of another corporation which is or at any relevant time has been an associated corporation of the listed company he shall have power to do so and shall report on the ownership of the shares or debentures of the other corporation so far as he thinks that the results of his investigation of those shares or debentures are relevant to the investigation of the ownership of shares in or debentures of the listed company.

(2) An inspector appointed under either section may at any time in the course of his investigation, without the necessity of making an interim. report, inform the Financial Secretary of matters coming to his knowledge as a result of the investigation tending to show that an offence has been committed.