STOCK EXCHANGES UNIFICATION ORDINANCE

STOCK EXCHANGES UNIFICATION ORDINANCE

LAWS OF HONG KONG

STOCK EXCHANGES UNIFICATION ORDINANCE

CHAPTER 361





CHAPTER 361

STOCK EXCHANGES UNMCATION ORDINANCE

ARRANGEMENT OF SECTIONS

Section Page

PART I

PRELIMINARY

1. Short title ............................................................................. 3
2. Interpretation ....................... 3

PART 11

THE EXCHANGE
COMPANY

3. Recognition of company as the Exchange Company ................
5

4. Application of Companies Ordinance to Exchange Company 6
5-9. (Repealed) .........................6

10. Committee to manage the Exchange Company ............ 6

10A. Appointment of chief executive of Exchange Company to be approved by

Commission ..............................6
11. Membership of Exchange Company ......6
12. Eligibility for individual members .. 7
13. Eligibility for being a corporate member 7

14. Certain persons not to be ineligible to be members of the Exchange Company 7

15. Duty of Exchange Company to ensure compliance by its members with

section 65B of the Securities Ordinance . 8
16-25. (Repealed) .......................8
26. Void agreements .....................8

PART III

THE UNIFIED
EXCHANGE

27. The Unified Exchange .................9
28. (Repealed) ...........................9
29. Premises of the Unified Exchange .....9

PART IV

LIQUIDATION oF EXISTING
EXCHANGES

30-3 1. (Repealed) ......................10
32. Insolvency of existing exchange .....10
33. Part V of the Companies Ordinance to apply 10





Section ................Page
PART V
MISCELLANEOUS
34. Rules of the Unified Exchange 10
35. Commission to approve proposed rules and amendments to constitution, etc. 11
36..............................Withdrawal of recognition of the Exchange Company ..................... 11
37. Appeal against withdrawal of recognition ..................... 12
38. (Repealed) ...........................12
39. Commission may prosecute .............12
40. Extensions of time ...................12
41. Regulations ............................................................................ 13
42. Application of sections 20 and 21 of the Securities Ordinance 13
43. Consequential amendments and transitional provisions 13
44. Exchange Company to amend its articles of association ..................... 13

Schedule 1 . .............................14
Schedule 2...................Transitional Arrangements 14





CHAPTER 361

STOCK EXCHANGES UNIFICATION

To provide for the establishment of a single, unified stock exchange in Hong Kong;
to provide for an Exchange Company to operate the Unified Exchange; to
provide for the winding up of existing exchanges; and to provide for related
matters.

(Amended 59 of 1985 s.
2)

[I February 1981] L.N. 29 of 1981

Originally 55 of 1980 L.N. 259 of 1980, 9 of 1982, 65 of 1982, 59 of 1985, L.N. 61 of 1986,
27 of 1986, R. Ed. 1986, 10 of 1989,

PART 1

PRELIMINARY

1. Short title

This Ordinance may be cited as the Stock Exchanges Unification

Ordinance.

2. Interpretation

(1) In this Ordinance, unless the context otherwise requires-

'appointed day' means the day appointed by the Financial Secretary under section
27;

,,articles of association' means the articles of association of the Exchange
Company;

Commission' means the Securities and Futures Commission established under the
Securities and Futures Commission Ordinance (Cap. 24); (Amended 10 of 1989
s. 65)

'Committee' means the Committee, by whatever name called, for the
management and control of the Exchange Company; (Amended 59 of
1985 s. 3)



'constitution', in relation to the Exchange Company or an existing exchange,
means the memorandum and articles of association of the Exchange
Company or existing exchange, as the case may be;




'Council' means the Council of the Hong Kong Federation of Stock Exchanges,
established under section 32 of the Securities Ordinance (Cap. 333);

'Court' means the High Court;

'dealer' has the same meaning as in section 2 of the Securities Ordinance

(Cap. 333);

'dealing in securities' has the same meaning as in section 2 of the Securities

Ordinance (Cap. 333);

'document' has the same meaning as in section 2 of the Securities Ordinance

(Cap. 333);

'Exchange Company' means the company recognized as the Exchange

Company under section 3;

'existing exchanges' means the Far East Exchange Limited, the Hong Kong

Stock Exchange Limited, the Kam Ngan Stock Exchange Limited and the
Kowloon Stock Exchange Limited, and 'existing exchange' means any one of
them;

'financial resources rules' has the meaning assigned to it by section 28 of the

Securities and Futures Commission Ordinance (Cap. 24); (Added 10 of
1989 s. 65)

'Hong Kong Federation of Stock Exchanges' means the Hong Kong

Federation of Stock Exchanges established under section 31 of the Securities
Ordinance (Cap. 333);

Iisting' has the same meaning as in section 2 of the Securities Ordinance

(Cap. 333);

'member' means a shareholder of the Exchange Company; (Replaced 59 of

1985 s. 3)

'memorandum' means the memorandum of association of the Exchange

Company;

'securities' has the same meaning as in section 2 of the Securities Ordinance

(Cap. 333);

stockbroking business' has the same meaning as in section 98(1) of the

Securities Ordinance(Cap. 333); (Added 59 of 1985 s.3)

',stock market' has the same meaning as in section 2 of the Securities

Ordinance (Cap. 333);

'Unified Exchange' means the stock market established, operated and

maintained under section 27.







(2) For the purposes of any provision of this Ordinance relating to membership
of the Exchange Company each share in the Exchange Company

shall be deemed to constitute a separate membership of the Exchange

Company. (Replaced 59 of 1985 s. 3)

(Amended 59 of 1985 s. 3)





PART 11

THE EXCHANGE
COMPANY

3. Recognition of company as the Exchange Company

(1) Subject to this section, the Commission may, by certificate in writing under
its seal, recognize as the Exchange Company for the purposes of this Ordinance a
company formed and registered under the Companies Ordinance (Cap. 32).

(2) The Commission shall not recognize a company pursuant to subsection (1)
unless it is satisfied that the company complies with the requirements of subsection
(3).

(3) The requirements referred to in subsection (2) are that

(a)the objects contained in the company's memorandum of association
include

(i) the establishment and operation of a stock market; and

(ii)the provision and maintainance, to the satisfaction of the
Commission, of adequate and properly equipped premises for
the conduct of the business of a stock market;

(b)the articles of association contain nothing contrary to the provisions
of this Ordinance; (Replaced 59 of 1985 s.4)

(c)-(e) (Repealed 59 of 1985 s. 4)

(f)the memorandum and articles of association of the company provide
for the making of rules for the proper and efficient operation and
management of a stock market;

(g)the memorandum and articles of association of the company provide
that the company will make the deposits required to be made to any
compensation fund established under Part X of the Securities
Ordinance (Cap. 333) in respect of the Exchange Company;

(h)the articles of association of the company have been approved by
the Commission.

(4) The Commission may

(a)where it intends to recognize a company under subsection (1); and

(b)for the purposes of enabling that company to comply to the
satisfaction of the Commission with the requirements of subsection
(3),

cause the articles of association of the company to be drawn up and delivered to the
Registrar of Companies.

(5) Notwithstanding anything in the Companies Ordinance (Cap. 32), the
Registrar of Companies may register articles of association delivered under





subsection (4), notwithstanding that the articles have not been signed by all or any
of the subscribers to the memorandum of association of the company; and the
articles so registered shall be as valid and binding as if they had been signed by
each subscriber and witnessed in the manner provided by that Ordinance.

4. Application of Companies Ordinance

to Exchange Company

The provisions of the Companies Ordinance (Cap. 32) shall apply to the
Exchange Company to the extent that they are not inconsistent with this Ordinance.

5-9. (Repealed 59 of 1985 s. 5)

10. Committee to manage the Exchange Company

(1) The management and control of the Exchange Company shall, subject to
this Ordinance and to the constitution of the Exchange Company, be vested in the
Committee. (Amended 59 of 1985 s. 6)

(2) Subject to this Ordinance and to any other law, the election of the
Committee and all matters relating to the Committee shall be governed by the
articles of association. (Added 59 of 1985 s.6)

10A. Appointment of chief executive of Exchange
Company to he approved by Commission

No appointment of a person as chief executive of an Exchange Company shall
have effect unless such appointment is approved by the Commission.

(Added 10 of 1989 s. 65)

11. Membership of Exchange Company

(1) No person shall become, or remain, a member of the Exchange Company
unless he is eligible to be a member under section 12 or 13.

(2) Subject to this Ordinance and to any other law, the rights, liabilities and
privileges of members of the Exchange Company shall be governed by the
constitution of the Exchange Company.

(3) Subsection (1) shall not have the effect of preventing a person from
continuing to be a member of the Exchange Company while his registration as a
dealer is suspended under section 55 or 56 of the Securities Ordinance (Cap. 333) if
he is otherwise eligible to continue to be such a member.

(Replaced 59 of 1985 s. 7)





12. Eligibility for individual members

(1) Subject to subsection (2), no individual shall be eligible to be a member of
the Exchange Company unless he is

(a)a dealer registered under Part VI of the Securities Ordinance (Cap.
333);

(b) of good character and integrity; and

(c)a person born in Hong Kong or who has been ordinarily resident in
Hong Kong for 5 out of the 7 years immediately preceding his
application for membership of the Exchange Company.

(2) Notwithstanding anything in subsection (1)(c) or in the constitution of the
Exchange Company, the Commission may, on application made to it in writing by
the Exchange Company, authorize the Exchange Company to admit to membership
an individual who is not qualified therefor by reason of that subsection if, in the
opinion of the Commission, he is a person of good reputation experienced in dealing
in securities.

(Replaced 59 of 1985 s. 7)

13. Eligibility for being a corporate member

No body corporate shall be eligible to be a member of the Exchange Company
unless

(a)it is a dealer registered under Part VI of the Securities Ordinance
(Cap. 333);

(b) it is incorporated in Hong Kong;

(c)the only business carried on by it is that of dealing in securities and
those activities which are normally ancillary to a stockbroking
business; and

(d) it is of good financial standing and integrity.

(Replaced 59 of 1985 s. 7)

14. Certain persons not to he ineligible to he

members of the Exchange Company

Any provision in the constitution of the Exchange Company having the effect
that any of the following persons shall not be eligible to be members of the
Exchange Company shall be void

(a)a director or employee of a bank licensed under the Banking
Ordinance (Cap. 155) to carry on business in Hong Kong;

(b)a director or employee of a deposit-taking company registered or
licensed under the Banking Ordinance (Cap. 155); or

(c)a solicitor, professional accountant (within the meaning of the
Professional Accountants Ordinance (Cap. 50)) or a barrister; or





(d)a body corporate eligible to be a member of the Exchange Company
by section 13.

(Replaced 59 of 1985 s. 7)

15. Duty of Exchange Company to ensure compliance

by its members with section 65B of the
Securities Ordinance

(1) It shall be the duty of the Exchange Company to ensure compliance by its
members with section 65B of the Securities Ordinance (Cap. 333), and by any of its
members to whom financial resources rules apply or, in case such rules so apply
subject to a condition or other modification, that they are complied with by the
member concemed in accordance with the condition or modification.

(2) The Committee shall forthwith notify the Commissioner if it becomes aware

(a)that any member is unable to comply with section 65B and any
financial resources rules or, where appropriate, with any such rules as
modified; or

(b)of any financial irregularity or other matter which in the opinion of the
Committee, indicates or may indicate that the financial standing or
integrity of any member is in question.

(Replaced 59 of 1985 s. 7. Amended lO of 1989s. 65)

16-23. (Repealed 59 of 1985 s. 7)
24-25.(Repealed 59 of 1985 s. 8)

26. Void agreements

Any agreement, whether entered into before or after the commencement* of
section 9 of the Stock Exchanges Unification (Amendment) Ordinance 1985 (59 of
1985), which has directly or indirectly the effect of making a member of the Exchange
Company subject to the control or direction of another, whether as the agent,
trustee or nominee of that other or otherwise howsoever shall be void and without
effect:

Provided that nothing in this section shall have the effect of avoiding-

(a)any partnership agreement for a partnership registered as a dealing
partnership under Part VI of the Securities Ordinance (Cap. 333);

* Commencement date 2 April 1986.





(b)any mandate given by the client of each member as to dealings on the
Unified Exchange on that client's behalf;

(c)any agreement under which such member acts as an agent of a
member of a foreign stock exchange as defined for the purposes of the
Securities Ordinance (Cap. 333);

(d)any other transaction undertaken in the ordinary course of
stockbroking business.

(Replaced 59 of 1985 s. 9)

PART 111

THE UNIFIED
EXCRANGE

27. The Unified Exchange

(1) On and after a dayt to be appointed by the Financial Secretary by notice in
the Gazette, the Exchange Company shall have the exclusive right to establish,
operate and maintain a stock market in Hong Kong.

(2) The Financial Secretary shall appoint a day under subsection (1), which
shall not be later than 3 years after the date of commencement of this Ordinance.

(3) The stock market established under subsection (1) shall, for the purposes of
this Ordinance, be known as the Unified Exchange.

(4) The members of the Exchange Company shall be the members of the Unified
Exchange. (Amended 59 of 1985 s. 10)

28. (Repealed 10 of 1989 s. 65)

29. Premises of the Unified Exchange

(1) The Exchange Company shall at all times on and after the appointed day
maintain to the satisfaction of the Commission adequate and properly equipped
premises for the conduct of the business of the Unified Exchange.

(2) The Exchange Company shall not use any premises for the purposes of a
trading floor or for any ancillary purposes or functions of the Unified Exchange
without the prior approval of the Commission.

Unification (Extension of Period) (Consolidation) Order (Cap. 361 sub. leg.)





PART IV

LIQUIDATION OF ExiSTING
EXCHANGES

30-31. (Repealed 10 of 1989 s. 65)

32. Insolvency of existing exchange

If in the course of winding up an existing exchange, the liquidator is satisfied
that the existing exchange is insolvent, then the liquidation shall, notwithstanding
that a declaration of solvency has been made and delivered in accordance with
section 233 of the Companies Ordinance (Cap. 32), continue as a creditors'
voluntary winding up within the meaning of that section.

33. Part V of the Companies Ordinance to apply

The provisions of Part V of the Companies Ordinance (Cap. 32) shall apply to a
winding up under this Part to the extent that they are not inconsistent with this Part.

PART V

MISCELLANEOU
S

34. Rules of the Unified Exchange

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

(a) prescribing listing requirements for the quotation of securities on

the Unified Exchange;

(b) to ensure compliance by its members with section 65B of the

Securities Ordinance (Cap. 333) and financial resources rules for
the better fulfillment by the Exchange Company of the duty
imposed on it by section 15 and, without derogation from the
generality hereof such rules may-

(i) prescribe the returns to be made by members, 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 members of the costs of valuation;

(iii) prescribe the manner in which records are to be kept by members
of any assets which may be taken into account for





the purposes of section 65B of the Securities Ordinance
(Cap. 333) and 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; and (Added 59 of 1985
s.]]. Amended 10of 1989s. 65)
(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.

35. Commission to approve proposed rules
and amendments to constitution, etc.

(1) No-
(a) rules under section 34, or any amendment thereto; or
(b) amendment to the constitution of the Exchange Company,
shall have effect unless approved in writing by the Commission.
(2) Where it is proposed to make-
(a) any rules under section 34, or any amendment thereto; or
(b) any amendment to the constitution of the Exchange Company,
the Committee shall forward written notice thereof, together with a copy of
such proposed rules or amendment, as the case may be, to the Commission for
its approval.
(3) The Commission may, within 6 weeks after receipt of a notice under
subsection (2), give notice to the Committee that it disallows the whole or any
specified part of any such rules or of any amendment thereto, or of any
amendment to the constitution; otherwise it shall, in writing, notify the
Committee of its approval. (Amended L.N. 259 of 1980)

36. Withdrawal of recognition of the Exchange Company

(1) Subject to subsection (2), the Commission may, by notice in the
Gazette, withdraw its recognition given under section 3 if the Exchange
Company-
(a)ceases to comply with any requirement specified in subsection (3)
of that section;
(b) fails or ceases to comply with section 15, 28(2), or 29(1) or (2);
(c) fails to comply with a direction under section 34(2) or 44(3);





(d)fails to make any deposit or payment into any compensation fund
established under Part X of the Securities Ordinance (Cap. 333) in
respect of the Unified Exchange; or

(e)is being wound up or ceases to operate the Unified Exchange.
(Amended 59 of 1985 s. 12)

(2) The Commission shall give to the Exchange Company not less than 14 days'
notice in writing of its intention to withdraw its recognition under subsection (1)
and the notice shall specify the grounds therefor.

(3) Any withdrawal of recognition by the Commission under this section shall
take effect immediately, notwithstanding that an appeal has been made or may be
made under section 37.

(4) Nothing in this section shall derogate from any power given to the
Commission under the Securities Ordinance (Cap. 333) in respect of the closure of
the Unified Exchange. (Amended 10 of 1989 s. 65)

37. Appeal against withdrawal of recognition

(1) Where the Commission withdraws its recognition under section 36, the
Exchange Company may, within 14 days after the publication in the Gazette of the
notice of withdrawal, appeal to the Governor in Council against the withdrawal.

(2) After considering any appeal under subsection (1), the Governor in Council
may confirm, reverse or vary the decision of the Commission; and the decision of
the Governor in Council shall be final.

38. (Repealed 10 of 1989 s. 65)

39. Commission may prosecute

Without prejudice to the provisions of any other enactment relating to the
prosecution of criminal offences, and without prejudice to the powers of the
Attorney General in relation to the prosecution of such offences, the Commission
may institute proceedings in respect of any ofrence against this Ordinance.

40. Extensions of time

(1) The Governor in Council may by order extend the period prescribed under
section 27(2).

(2) The Financial Secretary may, on the advice of the Commission and either
generally or in a particular case, extend the time prescribed or allowed for the doing
of any act or thing under section 9, 19(1) or (3), 20(1), 23(1), 24(1),
26(2), 28(2) or 35(3)
(Amended 10 of 1989 s. 65)





41. Regulations

(1) The Governor in Council may, after consultation with the Commission, make
regulations for the better carrying out of the purposes and provisions of this
Ordinance.

(2) Regulations made under this section may provide that a contravention of
any provision thereof shall be an ofrence, and may provide penalties therefor not
exceeding a fine of $20,000 and imprisonment for 3 months.

42. Application of sections 20 and 21

of the Securities Ordinance

(1) Section 20 of the Securities Ordinance (Cap. 333) shall not apply to any act
done pursuant to this Ordinance in furtherance of the establishment of the Unified
Exchange.

(2) Nothing in section 21 of the Securities Ordinance (Cap. 333) shall prevent
the taking or use, or the attaching to or exhibition at any place of the title 'stock
exchange' or 'exchange' or 'Unified Exchange', or any title resembling any of such
titles, for the purposes of any provision of this Ordinance in force.

43. Consequential amendments

and transitional provisions

(1) This section shall come into operation on the appointed day.

(2) (Repealed 59 of 1985 s. 13)

(3) The provisions of Schedule 2 shall have effect with respect to the matters
contained in that Schedule. (Amended 59 of 1985 s.13)

(4) Unless the context otherwise requires, a reference in any Ordinance to a
recognized stock exchange or to a stock exchange approved or deemed to have
been approved under the Securities Ordinance (Cap. 333), shall be construed as a
reference to the Unified Exchange.

44. Exchange Company to amend

its articles of association

(1) The Exchange Company shall alter its constitution to provide for the
matters specified in Part 1 of Schedule 1.

(2) The provisions of Part 11 of Schedule 1 shall apply to the alteration referred
to in subsection (1).

(3) Where the Commission is of the opinion that the Exchange Company has
failed to comply with subsection (1) or is unreasonably delaying compliance, it may
in writing direct it so to comply within such time as may be specified in the direction,
and the Commission may, prior to the time so specified, extend such time by a
further direction in writing.

(Added 59 of 1985 s. 14)





SCHEDULE1 [s. 44)

PART I

1 Such provisions as are necessary for the better implementation of Part II of this Ordinance as
amended by the Stock Exchanges Unification (Amendment) Ordinance 1985 (59 of 1985) and,
without derogation from the generality of the foregoing

(a)to enable any individual who was a member immediately prior to the
commencement of section 7 of that Ordinance, to resign his membership without
penalty and to assign his shares in the Exchange Company to a body corporate
which is, after such commencement, approved by the Exchange Company for
admission to membership subject to such assignment;

(b)to enable persons who were associate members prior to such commencement and
who, upon such commencement, are eligible to be members, to become members.

2. A provision requiring any member who is a partner in a dealing partnership which applies for
registration under Part VI of the Securities Ordinance (Cap. 333) to notify the Exchange
Company of such application at the time when application is made under that Part.

3. A provision enabling the Exchange Company to prohibit a member of the Exchange
Company from being a partner in a limited partnership, notwithstanding that this is registered as
a dealing partnership under Part VI of the Securities Ordinance (Cap. 333), where any partner
who is not a registered dealer under that Part is not a person approved of by the Exchange
Company.

PARTII

4. Section 35 shall apply to the alteration and the Commission shall withhold its approval under
section 35(1) if the alteration does not, in their opinion, give proper effect to section 44 and
this Schedule. Until such approval is obtained the Exchange Company shall be deemed not to
have complied with section 44(1) or any direction under section 44(3).

5. For the purpose of determining the validity of the alteration, all the provisions of the
Stock Exchanges Unification (Amendment) Ordinance 1985 (59 of 1985) shall be deemed to
have had effect upon the enactment thereof, but the alteration shall have no effect,
notwithstanding the approval of the Commission under section 35(1), prior to the
commencement of section 7 of the Stock Exchanges Unification (Amendment) Ordinance 1985
(59 of 1985).

6. In this Schedule 'alteration' means the alteration to the constitution of the Exchange
Company required by section 44(1).

(Replaced 59 of 1985 s. 15)

SCHEDULE 2 [s. 43(3)]

TRANSITIONAL ARRANGEMENTS

1 For the purposes of this Schedule

(a)any term or expression not defined in this Ordinance shall have the same meaning
as it had, immediately prior to the appointed day, in the Securities Ordinance (Cap.
333); and

(b)a reference to any provision in the Securities Ordinance (Cap. 333) shall be a
reference to that provision in force immediately prior to the appointed day.

2. (1) All property of whatever kind and whether movable or immovable vested in or belonging
to the Hong Kong Federation of Stock Exchanges immediately prior to the appointed day is as
from such date transferred to and vested in the same interest in the Exchange Company





without any further assurance; and the Exchange Company shall have all powers necessary to
take possession of, recover and obtain the benefit of such property.

(2) Subject to paragraph 4, all obligations and liabilities of the Federation immediately prior
to the appointed day are from such date the obligations and liabilities of the Exchange
Company; and the Exchange Company may be sued in respect of and shall have all necessary
powers to discharge the same.

3. The Securities Commission Disciplinary Committee as constituted immediately prior to the
appointed day shall continue in existence for the purposes of completing any inquiry under
section 39 of the Securities Ordinance (Cap. 333), or hearing any appeal under section 58 of
that Ordinance, commenced prior to that date but not at that date completed or disposed of, and
for the purposes of this paragraph

(a) any such inquiry or appeal may be continued and completed or disposed of, and

(b)any order or decision of the Disciplinary Committee so constituted may be made
or given and shall have the same force and effect,

as if section 43 of this Ordinance had not been enacted.

4. (1) The provisions of Part X of the Securities Ordinance (Cap. 333) in force immediately
prior to the appointed day, other than sections 112 and 121 shall, subject to this paragraph,
continue to apply for the purposes of this paragraph as if references therein to the Federation
and to the Council of the Federation were references, in either case, to the Commission, and in
particular and without prejudice to the generality of the foregoing

(a)the Stock Exchanges Compensation Fund established and maintained under section
99 of the Securities Ordinance (Cap. 333) shall continue in existence and shall be
maintained by the Commission until such time as it is paid out under this
paragraph; and

(b)the Securities Commission Compensation Fund Committee established by section
100 of the Securities Ordinance (Cap. 333) shall continue in existence for the
purposes of that section with such members as were immediately prior to the
appointed day appointed thereto or as are appointed from time to time thereafter
under that section.

(2) Except as provided in this paragraph, no claim may be made for compensation from the
compensation fund.

(3) Where in respect of a default occuring prior to the appointed day a person has claimed
compensation from the compensation fund but the claim has not at that date been disposed of,
such claim may be continued and disposed of under this paragraph.

(4) The Commission shall, as soon as practicable after the appointed day, cause to be
published in one or more English language newspapers and one or more Chinese language
newspapers, published daily and circulating generally in Hong Kong, a notice specifying a date,
not being earlier than 6 months after publication of the notice, on or before which a claim for
compensation from the compensation fund may be made by any person.

(5) Where, in respect of a default occurring prior to the appointed day, a person wishes to
claim compensation from the compensation fund, he shall lodge his claim in writing with the
Commission

(a)if a notice under subparagraph (4) has been published, on or before the date
specified in the notice; or

(b)if no such notice has been published, within 6 months after the claimant became
aware of the default giving rise to the claim.

(6) Any claim that is not made within the time limited by subparagraph (5) shall, unless the
Commission otherwise determines, be barred.

(7) In the event of an existing exchange being wound up (whether pursuant to Part IV of






this Ordinance or otherwise), the Commission shall, after

(a) all claims made or continued under this paragraph have been disposed of; and

(b) all outstanding liabilities against the compensation fund have been satisfied, pay to
the liquidator of the existing exchange the whole or any part remaining of the amounts
contributed by the existing exchange under Part X of the Securities Ordinance (Cap. 333),
together with any income accrued in respect thereof., and on any such payment being made
those amounts shall form part of the assets of the existing exchange and shall be available to the
liquidator for distribution in accordance with the Companies Ordinance (Cap. 32).

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