1964_SECURITIES_(DISCLOSURE_OF_INTERESTS)_ORDINANCE — Page 16

f

1988 Ed.]

Securities (Disclosure of Interests)

[CAP. 396

15

Interests to be disregarded

14. (1) The following interests in shares are disregarded for purposes of sections 3 to 7-

(a) where property is held on trust and an interest in shares is comprised in that property, an interest in reversion or remainder or of a bare trustee or a custodian trustee, and any discretionary interest;

(b) an interest which subsists by virtue of—

(i) any unit trust or mutual fund corporation authorized under section 15 of the Securities Ordinance (Cap. 333);

(ii) a charitable scheme made by order of any court of competent jurisdiction; or

(iii) the vesting of a deceased's estate in any judicial officer between the time of death and the grant of letters of administration;

(c) an interest for the life of himself or another of a person under a settle- ment in the case of which the property comprised in the settlement consists of or includes shares, and the conditions mentioned in subsection (3) are satisfied;

(d) an exempt security interest;

(e) an interest in shares held by the Registrar of the Supreme Court; or (f) such interests, or interests of such a class, as may be prescribed for

purposes of this paragraph by regulations.

(2) A person is not by virtue of section 13(4)(b) taken to be interested in shares by reason only that he has been appointed a proxy to vote at a specified meeting of a listed company or of any class of its members and at any adjournment of that meeting, or has been appointed by a corporation to act as its representative at any meeting of a listed company or of any class of its members.

(3) The conditions referred to in subsection (1)(c) are, in relation to a settlement-----

(a) that it is irrevocable; and

(b) that the settlor has no interest in any income arising under, or

property comprised in, the settlement.

(4) An interest in shares is an exempt security interest for the purposes of subsection (1)(d) if it is held---

(a) by a person who is

(i) an authorized financial institution;

(ii) an insurer who is authorized within the meaning of the Insurance Companies Ordinance (Cap. 41); or

(iii) a stockbroker, exempt dealer or registered dealer within the meaning of the Securities Ordinance (Cap. 333); and

(b) by way of security only for the purposes of a transaction entered into

in the ordinary course of his business as such a person.

(5) For the purposes of subsection (1) a person shall not be held not to be a bare trustee in respect of any property by reason only—