Legislative Council

LC Paper No. LS26/98-99

Paper for the House Committee Meeting
of the Legislative Council
on 25 September 1998

Legal Service Division Report on
Securities (Insider Dealing) (Amendment) Bill 1998

Object of the Bill

To amend the definition of "judge" in section 2(1) of the Securities (Insider Dealing) Ordinance (Cap. 395) (SIDO) to include a deputy judge of the Court of First Instance in the definition (Clause 2).

LC Brief Reference

2. C2/2/2C(97)XVI issued by the Financial Services Bureau.

Date of First Reading

3. 23 September 1998.

Comments

4. The Bill seeks to include deputy judges of the Court of First Instance (Deputy Judges) as potential candidates for appointment to the Chair of the Insider Dealing Tribunal (section 15 of SIDO).

5. According to the Appointment and Establishment Section of the Judiciary, the total number of Deputy Judges of the Court of the First Instance varies from time to time. The overwhelming majority of the Deputy Judges have been appointed from the rank of district judges. Private practitioners may also be appointed as Deputy Judges but their terms of service vary from case to case.

6. The definition of "judge" in section 2 of SIDO was last amended in April this year by the Adaptation of Laws (Courts and Tribunals) Ordinance (Ordinance No. 25 of 1998, item 216). That amendment may have the effect of excluding from the definition former judges of the High Court who retired before the Reunification. The Administrative has been informed about this observation.

Public Consultation

7. The Administration has not consulted the public on the Bill.

Consultation with LegCo Panel

8. Members of the Panel on Financial Affairs have been briefed by the Administration on the Bill during the Panel meeting held on 7 September 1998. Some Members have raised the concern that Deputy Judges appointed from private practitioners may have conflict of interests in acting as chairman of the Insider Dealing Tribunal.

Conclusion

9. The legal and drafting aspects of the Bill are in order. Subject to Members* views, the Bill is ready for resumption of the second reading debate.


Prepared by

KAU Kin-wah
Assistant Legal Adviser

Legislative Council Secretariat
23 September 1998