CONFIDENTIAL
XCC(91)151
Council members and officers be given a statutory immunity against civil litigation in respect of bona fide acts in discharge of this duty. The Administration considers this a reasonable request. It is in line with the immunity given to the Commissioners of Banking and Insurance and to SFC in carrying out their functions.
THE BILL
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Section 10 of SEUO on appointment of proxy is amended to restrict appointment of proxy by a member at the election of the Council of the SEHK only if he is ill, away from Hong Kong or has other good cause. A member appointing a proxy may have to make a statutory declaration for his absence and the reasons therefor if required to do so by SEHK. The proxy must be a registered person under the Securities Ordinance (Clause 2 of Annex).
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A new section is included to require SEHK to act in the interests of the public and to offer immunity to SEHK from any liability arising from a breach of this duty if SEHK act in good faith (Clause 3 of Annex).
PUBLIC CONSULTATION
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The proposals in the Bill are supported by the SFC. The Standing Committee on Company Law Reform has been consulted and supports the proposed amendment on proxy voting. Abolition of proxies was originally recommended in the Report of the Securities Review Committee in 1988. The SEHK Council supports both the modifications to the existing proxy voting system and the public duty amendment. Leading members of the local brokerage community have also expressed publicly their support for the voluntary reform package which includes the proposal to restrict proxy voting.
FINANCIAL AND STAFFING IMPLICATIONS
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There are no financial or staffing implications.
Executive Council
No comments yet.
Private notes are available after approval.