THE Stock Exchange and the Securities and Futures Commission have reached common ground on tightening the rules for appointing company directors. In an attempt to improve disclosure after several controversies involving past criminal records, the pair announced listing rule amendments requiring future directors of listed companies to declare more information to assess their suitability for the post. The directors will have to sign revised forms disclosing their business and personal history and have those forms certified by sponsors and solicitors. The two regulatory bodies stepped back from introducing proposals that would call on all existing directors to execute and lodge a new declaration with the exchange. But they said directors would have to review their previous declarations and undertakings to the exchange and notify it of any omission and incorrect statements within 60 days. The amendments, which come into effect today, concern directors from Hong Kong incorporated companies and directors of an issuer incorporated in China, as well as supervisors of an issuer incorporated on the mainland and sponsors affected by the Model Code. Last year, Win Win International Holdings and Goldlion Holdings sparked a furore when it emerged that senior executives had not disclosed criminal records to the exchange. In 1994, the exchange forced the chairman of Ming Pao Enterprise, Yu Pun-hoi, to resign after it was revealed that he had failed to disclose a 1979 conviction for credit card fraud.
