Unfinished Business would be churlish not to immediately acknowledge the decision by the Stock Exchange and the Securities and Futures Commission to warn listed companies about connected party transactions under which public companies purchase, from theirdirectors, properties and businesses located in China and other developing markets.

The two bodies are contemplating a new rule which would limit the acquisition price to original cost plus expenses for all assets sold to the listed corporations within two years of purchase by their directors. Had this rule been in force, the transactionsmade by the CNT Group, highlighted in the last Unfinished Business column, would have been thwarted.