Hong Kong Ordinances

STOCK EXCHANGES UNIFICATION ORDINANCE - SECT 34

Rules of the Unified Exchange

Caution: This is a past version. See the current version here.

PART V

MISCELLANEOUS

(1) The Exchange Company may, subject to this Ordinance and to the
Securities Ordinance ( Cap 333), make rules-

   (a)  respecting-

        (i)    applications for the listing of securities and the requirements
               to be met before securities may be listed on the Unified
               Exchange;

        (ii)   the entering into of agreements between the Exchange Company
               and other persons in connection with the listing of securities
               on the Unified Exchange and the enforcement of those agreements
               by the Exchange Company;

        (iii)  the cancellation and withdrawal of the listing of, and the
               suspension of dealings in, securities listed on the Unified
               Exchange;

        (iv)   the imposition on any person of obligations to observe
               specified standards of conduct or to perform, or refrain from
               performing, specified acts as may reasonably be imposed in
               connection with the listing or continued listing of securities
               on the Unified Exchange;

        (v)    the penalties or sanctions which may be imposed by the Exchange
               Company for a breach of rules made under this paragraph; and

        (vi)   procedures or conditions which may be imposed, or circumstances
               which are required to exist, in relation to matters which are
               provided for in rules made under this paragraph; (Replaced 74
               of 1994 s. 2)

   (b)  to ensure compliance by its exchange participants with financial
        resources rules and, without derogation from the generality hereof
        such rules may-

        (i)    prescribe the returns to be made by exchange participants, the
               form of such returns, the information to be included therein
               and the manner in which such information is to be verified;

        (ii)   provide for the manner in which any assets are to be valued and
               for the payment by exchange participants of the costs of
               valuation;

        (iii)  prescribe the manner in which records are to be kept by
               exchange participants of any assets which may be taken into
               account for the purposes of financial resources rules and the
               places at which such records are to be maintained;

        (iv)   provide for the inspection of records by any duly authorized
               officer of the Exchange Company; (Replaced 12 of 2000 s. 23)

   (ba) to deal with possible conflicts of interest that might arise where a
        relevant company or a relevant recognized exchange controller, within
        the meaning of section 13(1) of the Exchanges and Clearing Houses 
        (Merger) Ordinance ( Cap 555), seeks to be or is a listed company
        within the meaning of that section; and (Added 12 of 2000 s. 23)

   (c)  in respect of such other matters as are necessary or desirable for the
        proper and efficient operation and management of the Unified Exchange.
        (Amended 59 of 1985 s. 11)

(2) The Commission may in writing direct the Exchange Company to make or amend
any rules referred to in subsection (1), if, after requesting the Exchange
Company to make or amend such rules, the Commission is satisfied that such
request has not been complied with.

(2A) The Secretary for Financial Services and the Treasury may, by notice in
the Gazette, repeal subsection (1)(b). (Added 12 of 2000 s. 23. Amended L.N.
106 of 2002)

(2B) The Commission may amend any rules made under subsection (1)(ba) by the
Exchange Company (or by the Commission pursuant to this subsection) and, for
that purpose, the Commission may exercise the power under that subsection
instead of the Exchange Company. (Added 12 of 2000 s. 23)

(2C) Section 35 shall not apply to any rules made by the Commission under
subsection (1)(ba) as read with subsection (2B). (Added 12 of 2000 s. 23)

(3) The power of the Exchange Company to make rules under subsection (1)(a)
includes the power to perform any function-

   (a)  that is conferred on the Exchange Company under the rules; or

   (b)  that reasonably arises out of the administration or enforcement by the
        Exchange Company of the rules. (Added 74 of 1994 s. 2)

(4) In making rules under subsection (1)(a) the Exchange Company shall take
into account that a solicitor or professional accountant (as defined in
section 2 of the Professional Accountants Ordinance ( Cap 50)) acting in his
professional capacity in private practice has duties imposed by law and by
virtue of rules of professional conduct. (Added 74 of 1994 s. 2)

(5) The Exchange Company shall, in circumstances stipulated in arrangements
agreed from time to time between it and The Law Society of Hong Kong or the
Hong Kong Society of Accountants, refer breaches of rules made under
subsection (1)(a)-

   (a)  which are alleged to have been committed by a solicitor or
        professional accountant in private practice; and

   (b)  which may also constitute a breach of duty imposed by law or by virtue
        of rules of professional conduct, to The Law Society of Hong Kong or,
        as the case may be, the Hong Kong Society of Accountants, for
        determination of whether to make a finding, impose a penalty or
        sanction or take other disciplinary action. (Added 74 of 1994 s. 2)

(6) For the purpose of subsections (4) and (5), a person shall be regarded as
acting in the capacity of a solicitor or professional accountant in private
practice if in the course of private practice he provides legal or
professional accountancy services to a client, but he shall not be regarded as
so acting where, in respect of a matter governed by rules made under
subsection (1)(a), he is also connected with that matter in any other
capacity. (Added 74 of 1994 s. 2)