Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 39

Immunity, etc.

(1) Without limiting the generality of section 380(1), no civil liability,
whether arising in contract, tort, defamation, equity or otherwise, shall be
incurred by-

   (a)  a recognized clearing house; or

   (b)  any person acting on behalf of a recognized clearing house, including-

        (i)    any member of the board of directors of the clearing house; or

        (ii)   any member of any committee established by the clearing house,
               in respect of anything done or omitted to be done in good faith
               in the discharge or purported discharge of the duties of the
               clearing house under sections 38 and 47 or in the performance
               or purported performance of its functions under its rules,
               including its default rules.

(2) Where, in the discharge or purported discharge of its duties under
section 63, a recognized exchange controller gives an instruction or direction
or makes a request to a recognized clearing house of which it is a controller,
the clearing house's duties under sections 38 and 47 or under its rules
(including its default rules) are not applicable to the clearing house in
respect of anything done or omitted to be done in good faith by the clearing
house in compliance with the instruction, direction or request.

(3) Without limiting the generality of section 380(1), no civil liability,
whether arising in contract, tort, defamation, equity or otherwise, shall be
incurred by-

   (a)  a person performing, by virtue of a delegation under the default rules
        of a recognized clearing house, a function of the clearing house in
        connection with any default proceedings; or

   (b)  any person acting on behalf of a person referred to in paragraph (a),
        including-

        (i)    any member of the board of directors of that person; or

        (ii)   any member of any committee established by that person, in
               respect of anything done or omitted to be done in good faith in
               the performance and purported performance of that function.

(4) Any failure by a recognized clearing house to comply with its rules in
relation to a matter does not prevent the matter from being treated for the
purposes of this Ordinance as done in accordance with the rules so long as the
failure does not substantially affect the rights of a person entitled to
require compliance with the rules.

(5) Where a relevant office-holder takes action in relation to property of a
defaulter which is liable to be dealt with in accordance with the
default rules of a recognized clearing house, and believes on reasonable
grounds that he is entitled to take that action, he is not liable to any
person in respect of any loss or damage resulting from his action except in so
far as the loss or damage (as the case may be) is caused by the
office-holder's own negligence.