Hong Kong Ordinances

SECURITIES AND FUTURES ORDINANCE - SECT 74

Provisions applicable where recognized exchange controller, etc. seeks to be listed corporation

(1) A relevant recognized exchange controller, or a relevant  corporation,
shall not become a listed corporation unless and until the Commission states
in writing that it is satisfied that-

   (a)  subject to subsection (2), rules made under section 23 adequately deal
        with possible conflicts of interest that might arise if the
        relevant recognized exchange controller or relevant corporation (as
        the case may be) were to be a listed corporation; and

   (b)  the relevant recognized exchange controller or relevant  corporation
        (as the case may be) has entered into arrangements with the Commission
        that adequately ensure-

        (i)    the integrity of the market in securities or futures contracts
               traded on the stock market or futures market operated by the
               recognized exchange company concerned or through the facilities
               of that recognized exchange company; and

        (ii)   the compliance with obligations as a listed corporation which
               would fall on the relevant recognized exchange controller or
               relevant  corporation (as the case may be) if it were to become
               a listed corporation.

(2) Rules referred to in subsection (1)(a) shall make provision to the effect
that the Commission shall, instead of the Stock Exchange Company, take all
actions and make all decisions in relation to the
relevant recognized exchange controller or relevant corporation that would be
taken by the Stock Exchange Company in the case of a corporation that was
neither a recognized exchange controller nor a relevant corporation except in
the case of any action or decision in respect of which the Commission states
in writing that it is satisfied that a conflict of interest will not arise if
that action or decision were to be taken or made (as the case may be) by the
Stock Exchange Company.

(3) By virtue of this section, the Commission shall have such functions as are
provided for it under-

   (a)  rules made for the purposes of subsections (1)(a) and (2);

   (b)  arrangements referred to in subsection (1)(b).

(4) Where a fee is payable to the Stock Exchange Company by a person for the
taking of an action or the making of a decision which may be taken or made (as
the case may be) by the Commission by virtue of subsections (1)(a) and (2),
then, notwithstanding any other enactment or rule of law, that person shall
pay that fee to the Commission in any case where the Commission takes that
action or makes that decision (as the case may be) by virtue of those
subsections.