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The Government announced today (January 30) that the Chief Executive has appointed Mr Nicholas Robert Sallnow-Smith as the acting Chairman of the Financial Reporting Council (FRC) under the FRC Ordinance (Cap. 588) to preside at meetings with respect to a case which the incumbent Chairman, Mr John Poon Cho-ming, is not able to participate in its deliberation as a result of his disclosure of interests, and with respect to other cases with the same situation for the period from January 31, 2014 to December 14, 2014. Mr Sallnow-Smith has been a lay member of the FRC since December 1, 2012.
Separately, the Financial Secretary, in exercise of the powers delegated by the Chief Executive under the FRC Ordinance, has appointed Mr Edward Kwan Pak-chung, Mr Michael William Scales and Mr Shum Man-to to serve as temporary members of the FRC on a rotating basis with respect to cases whereby the FRC is not able to meet the statutory quorum in relation to a matter in which any of the members appointed under Section 7(1)(c)(iv) of the FRC Ordinance cannot perform his statutory function as a result of his disclosure of an interest in the matter during the period from January 31, 2014 to November 30, 2015.
The FRC is an independent statutory body established in December 2006 to investigate possible auditing and reporting irregularities as well as to enquire into possible non-compliances with accounting requirements in relation to companies and collective investment schemes listed in Hong Kong.
Section 53 of the Ordinance requires any member who has disclosed an interest in a matter under consideration by the FRC to be absent during any deliberation of the matter unless the Council determines otherwise.
Section 3(1) of Schedule 2 to the Ordinance provides that if the Chairman is unable to perform the functions of his office because of his absence from Hong Kong or any other reason, the Chief Executive may appoint another appointed member of the FRC who is a lay person to act as the Chairman during the absence, incapacity or vacancy.
Besides, pursuant to Section 3(2) of Schedule 2 to the Ordinance, if an appointed member of the Council is unable to perform the functions of his office because of his absence from Hong Kong or any other reason, the Financial Secretary may, under the delegated authority of the Chief Executive, appoint another person to be a temporary member in his place during his absence or incapacity.
Section 6(4) of Schedule 2 to the Ordinance provides that two thirds of the FRC members will make a statutory quorum.
Ends/Thursday, January 30, 2014
Issued at HKT 10:01
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