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HKSI Paper 5 (Regulation of Corporate Finance) English Free Trial
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Question 1 of 30
1. Question
Which of the following statement(s) is true for companies incorporated in the PRC?
I. May be listed on the Shanghai and Shenzhen Exchanges in the form of ‘A’ or ‘B’ shares
II. The issuer is duly not incorporated in the PRC as a joint stock limited company
III. There are restrictions on the type of investor who trade in shares on mainland markets
IV. The PRC issuer has its shares not listed on another exchangeCorrect
Answer is A as companies incorporated in the PRC may be listed on the Shanghai and Shenzhen Exchanges in the form of ‘A’ or ‘B’ shares
Incorrect
Answer is A as companies incorporated in the PRC may be listed on the Shanghai and Shenzhen Exchanges in the form of ‘A’ or ‘B’ shares
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Question 2 of 30
2. Question
Which of the following statement(s) is true for Cayman Islands companies?
I. The companies are similar to those for Bermuda
II. The memorandum and articles of association must be changed without a special resolution passed by members
III. There are a few differences, such as changes to share capital (paragraph 2, Section 1) of Parts A and B of Appendix 13 of the Listing Rules.
IV. Its company laws are not based upon English company lawCorrect
Answer is A as the extra requirements for Cayman Islands companies are similar to those for Bermuda.
Incorrect
Answer is A as the extra requirements for Cayman Islands companies are similar to those for Bermuda.
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Question 3 of 30
3. Question
Which of the following statement(s) is true for the registration of the prospectus with the Registrar of Companies?
I. The current market practice is to issue a prospectus for a covered warrant
II. The registration process is similar except that the companies are registered under different parts of the CO
III. Company will be registered under and be bound by Part XI of the CO
IV. The CO contains civil and criminal liabilities for misstatements in a prospectusCorrect
Answer is B as the registration process is similar except that the companies are registered under different parts of the CO
Incorrect
Answer is B as the registration process is similar except that the companies are registered under different parts of the CO
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Question 4 of 30
4. Question
Which of the following statement(s) is true for a sponsor to perform its duties?
I. A new applicant must appoint one sponsor to assist it with its initial application for listing
II. At least one sponsor of a new applicant must be independent from the new applicant
III. Comply with the listing rules applicable to sponsors
IV. Conduct reasonable due diligence inquiries to put itself in a position to be able to make the relevant declarationCorrect
Answer is B as at least one sponsor of a new applicant must be independent from the new applicant.
Incorrect
Answer is B as at least one sponsor of a new applicant must be independent from the new applicant.
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Question 5 of 30
5. Question
The Board of directors of a listed issuer is collectively responsible for which of the following statement(s)?
I. A listed issuer to appoint a Compliance Adviser for such period
II. The management and operations of the listed issuer
III. Disclose any conflicts of interest in any contracts
IV. Directors in breach of this undertaking may be publicly censuredCorrect
Answer is D as the Board of directors of a listed issuer is collectively responsible for the management and operations of the listed issuer.
Incorrect
Answer is D as the Board of directors of a listed issuer is collectively responsible for the management and operations of the listed issuer.
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Question 6 of 30
6. Question
Chapter 5 of the GEM Listing Rules sets out which of the following rule(s)?
I. The required standard against which issuers and their directors must measure their conduct regarding transactions in securities of their issuers
II. The management and operations of the listed issuer
III. Holds more than 1% of the total issued share capital of the issuer
IV. Has a material interest in any principal business activity of or is involved in any material business dealings with the issuerCorrect
Answer is A the GEM Listing Rules also sets out the required standard against which issuers and their directors must measure their conduct regarding transactions in securities of their issuers.
Incorrect
Answer is A the GEM Listing Rules also sets out the required standard against which issuers and their directors must measure their conduct regarding transactions in securities of their issuers.
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Question 7 of 30
7. Question
According to section 251, the Tribunal comprises which of the following statement(s)?
I. Long interests under a cash-settled derivative will need to be disclosed
II. Comprises a chairman and two other members
III. The chairman is a judge and the two others shall not be public officers
IV. It may hear proceedings initiated under section 252Correct
Answer is B as according to section 251, the Tribunal comprises a chairman and two other members.
Incorrect
Answer is B as according to section 251, the Tribunal comprises a chairman and two other members.
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Question 8 of 30
8. Question
Which of the following statement(s) is true for PRC companies?
I. Abuses in the majority shareholders
II. The Exchange introduced a special chapter to the Listing Rules, Chapter 19A, which covers PRC companies wishing to list in Hong Kong.
III. The Exchange spent a considerable amount of time determining the competitive advantage
IV. PRC corporations will not seek to raise international capital in Hong KongCorrect
Answer is B as The Exchange introduced a special chapter to the Listing Rules, Chapter 19A, which covers PRC companies wishing to list in Hong Kong.
Incorrect
Answer is B as The Exchange introduced a special chapter to the Listing Rules, Chapter 19A, which covers PRC companies wishing to list in Hong Kong.
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Question 9 of 30
9. Question
Which of the following statement(s) is true for the advisers engaging in corporate advisory work under the Listing Rules?
I. An adviser should maintain proper books and records
II. Required to observe the Listing Rules, the Takeovers Code or the Share Repurchase Code
III. All staff members should be suitable and properly qualified
IV. Maintain satisfactory risk management proceduresCorrect
Answer is B as advisers engaging in corporate advisory work under the Listing Rules, the Takeovers Code or the Share Repurchase Code are required to observe those rules.
Incorrect
Answer is B as advisers engaging in corporate advisory work under the Listing Rules, the Takeovers Code or the Share Repurchase Code are required to observe those rules.
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Question 10 of 30
10. Question
The Companies Registry maintains which of the following statement(s)?
I. Registration of prospectuses
II. Public inspection the financial and other returns made by companies
III. Will follow up defaults in making the prescribed returns of entities
IV. The Registered Trustees Incorporated OrdinanceCorrect
Answer is B as The Companies Registry maintains public inspection the financial and other returns made by companies and will follow up defaults in making the prescribed returns of entities
Incorrect
Answer is B as The Companies Registry maintains public inspection the financial and other returns made by companies and will follow up defaults in making the prescribed returns of entities
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Question 11 of 30
11. Question
Corporate finance advisers should do which of the following statement(s)?
I. They should not issue false statements to the SFC or the SEHK
II. Act as the principal point of liaison between their clients and regulators
III. If an adviser is found to have materially misled no action will be taken
IV. The offence can be committed by both the issuer itself and its advisersCorrect
Answer is A as Corporate finance advisers should also note that they should not issue false statements to the SFC or the SEHK.
Incorrect
Answer is A as Corporate finance advisers should also note that they should not issue false statements to the SFC or the SEHK.
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Question 12 of 30
12. Question
A listed company may follow which of the following statement(s)?
I. Purchase its own shares, including any redeemable shares under section 49B of the CO
II. The listed company must also comply its laws of incorporation in the case of a foreign company.
III. The listed company must also comply with the Share Repurchase Code
IV. Will issue a certificate under section 38D(5) or 342C(5) of the COCorrect
Answer is C as A listed company may, if authorized by its articles, purchase its own shares, including any redeemable shares under section 49B of the CO
Incorrect
Answer is C as A listed company may, if authorized by its articles, purchase its own shares, including any redeemable shares under section 49B of the CO
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Question 13 of 30
13. Question
Corporate finance activities in Hong Kong are covered principally by which of the following statement(s)?
I. The participants of the scheme
II. The Securities and Futures Ordinance
III. The Listing Rules
IV. The Takeovers and Mergers CodeCorrect
Answer is B as Corporate finance activities in Hong Kong are covered principally by: the Securities and Futures Ordinance; the Companies Ordinance; the Takeovers and Mergers Code and the Share Repurchase Code.
Incorrect
Answer is B as Corporate finance activities in Hong Kong are covered principally by: the Securities and Futures Ordinance; the Companies Ordinance; the Takeovers and Mergers Code and the Share Repurchase Code.
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Question 14 of 30
14. Question
Those requiring a Type 6 license for giving corporate finance advice will obtain it from which of the following department(s)?
I. Sets fit and proper competency tests for licensees and potential licensees
II. Processes licensing applications and approves executive directors and staff as ‘responsible officers’
III. Does not set continuous professional training standards for licensees
IV. Does not support the work of the Academic and Accreditation Advisory CommitteeCorrect
Answer is A as those requiring a Type 6 license for giving corporate finance advice will obtain it from the department that sets fit and proper competency tests for licensees and potential licensees and processes licensing applications and approves executive directors and staff as ‘responsible officers’.
Incorrect
Answer is A as those requiring a Type 6 license for giving corporate finance advice will obtain it from the department that sets fit and proper competency tests for licensees and potential licensees and processes licensing applications and approves executive directors and staff as ‘responsible officers’.
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Question 15 of 30
15. Question
The Listing Rules reflect, in rule 2.03, are designed to ensure that investors have and can maintain confidence in the marketplace for which of the following statement(s)?
I. Advice given by a person or authorized institution who is licensed for Type 1 regulated activity
II. Applicants are suitable for listing
III. All holders of securities are treated fairly and equally
IV. Directors of a listed issuer does not act in the interests of its shareholders as a wholeCorrect
Answer is B as The Listing Rules reflect, in rule 2.03, currently acceptable standards in the marketplace and are designed to ensure that investors have and can maintain confidence in the marketplace and, in particular, that
applicants are suitable for listing.Incorrect
Answer is B as The Listing Rules reflect, in rule 2.03, currently acceptable standards in the marketplace and are designed to ensure that investors have and can maintain confidence in the marketplace and, in particular, that
applicants are suitable for listing. -
Question 16 of 30
16. Question
Which of the following statement(s) is true for SFC divisions?
I. The Enforcement Division
II. The Intermediaries
III. Investment Products Division
IV. Non-corporate finance practitionersCorrect
Answer is C as the SFC has a Corporate Finance Division, which is the major division that regulates corporate finance activities. However, the Enforcement Division, the Intermediaries and Investment Products Division and the Supervision of Markets Division also affect corporate finance practitioners.
Incorrect
Answer is C as the SFC has a Corporate Finance Division, which is the major division that regulates corporate finance activities. However, the Enforcement Division, the Intermediaries and Investment Products Division and the Supervision of Markets Division also affect corporate finance practitioners.
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Question 17 of 30
17. Question
A voluntary offer requires which of the following statement(s)
I. Where the offeror or any concert parties purchased shares for cash during the offer period and within six months prior to its commencement, which represents not less than 10% of the voting rights of that class
II. Where shares were purchased for cash by the offeror or its concert parties during the offer period
III. Where, in the view of the executive, a cash offer is necessary to give effect to General Principle paragraph 2.1.
IV. The minimum offer price for the first two circumstances in paragraph 4.51 above must be the highest price paidCorrect
Answer is C as a voluntary offer requires where the offeror or any concert parties purchased shares for cash during the offer period and within six months prior to its commencement, which represents not less than 10% of the voting rights of that class; where shares were purchased for cash by the offeror or its concert parties during the offer period; or where, in the view of the executive, a cash offer is necessary to give effect to General Principle paragraph 2.1.
Incorrect
Answer is C as a voluntary offer requires where the offeror or any concert parties purchased shares for cash during the offer period and within six months prior to its commencement, which represents not less than 10% of the voting rights of that class; where shares were purchased for cash by the offeror or its concert parties during the offer period; or where, in the view of the executive, a cash offer is necessary to give effect to General Principle paragraph 2.1.
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Question 18 of 30
18. Question
There are numerous other ordinances which may have a bearing in a takeover situation, depending upon which industry either party is involved?
I. Banking
II. Telecommunications
III. Utilities
IV. HospitalCorrect
Answer is C as There are numerous other ordinances which may have a bearing in a takeover situation, depending upon which industry either party is involved in — for example: banking; telecommunications; utilities; or shipping.
Incorrect
Answer is C as There are numerous other ordinances which may have a bearing in a takeover situation, depending upon which industry either party is involved in — for example: banking; telecommunications; utilities; or shipping.
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Question 19 of 30
19. Question
Which of the following document(s) needs to be lodged with the Exchange within 15 clear business days before expected hearing date
I. Two copies of the advance drafts of accounts
II. A formal declaration relating to any other business activities in the form of Form B/H/1 in Appendix 5 of the Listing Rules
III. Two copies of the draft profit forecast, where applicable
IV. Four copies of any proposed statement of adjustments to the accountsCorrect
Ans is A as At least 15 clear business days before the expected hearing date, in the case of a new applicant, the following documents must be lodged with the Exchange: a formal declaration relating to any other business activities in the form of Form B/H/1 in Appendix 5 of the Listing Rules; and two copies of the draft profit forecast, where applicable.
Incorrect
Ans is A as At least 15 clear business days before the expected hearing date, in the case of a new applicant, the following documents must be lodged with the Exchange: a formal declaration relating to any other business activities in the form of Form B/H/1 in Appendix 5 of the Listing Rules; and two copies of the draft profit forecast, where applicable.
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Question 20 of 30
20. Question
Which of the following additional requirement(s) is required for the issuers incorporated in the Cayman Islands and Bermuda
I. An overseas issuer must be incorporated in a jurisdiction where standards of shareholder protection are at least equivalent to those provided in Hong Kong
II. Appendix 15 places some requirements on the issuer in relation to the company bye-laws
III. The issuer is not required to organize for the simultaneous release of information to other exchanges and to the market in Hong Kong, and for the distribution of annual reports and accounts
IV. An accountant’s report will not normally be regarded as acceptable unless the relevant accounts have been audited to a standard comparable to that required in Hong KongCorrect
Answer is B as for those issuers incorporated in the Cayman Islands and Bermuda, the following additional requirements relating to a primary listing apply: An overseas issuer must be incorporated in a jurisdiction where standards of shareholder protection are at least equivalent to those provided in Hong Kong. The overseas issuer must appoint a person authorized to accept service of process and notices on its behalf in Hong Kong. Where two or more share registers are maintained, the Hong Kong register need only record those holders in Hong Kong. Appendix 13 places some requirements on the issuer in relation to the company bye-laws (see paragraphs 6.21 and 6.24 above). The issuer is required to organize for the simultaneous release of information to other exchanges and to the market in Hong Kong, and for the distribution of annual reports and accounts. An accountant’s report will not normally be regarded as acceptable unless the relevant accounts have been audited to a standard comparable to that required in Hong Kong.
Incorrect
Answer is B as for those issuers incorporated in the Cayman Islands and Bermuda, the following additional requirements relating to a primary listing apply: An overseas issuer must be incorporated in a jurisdiction where standards of shareholder protection are at least equivalent to those provided in Hong Kong. The overseas issuer must appoint a person authorized to accept service of process and notices on its behalf in Hong Kong. Where two or more share registers are maintained, the Hong Kong register need only record those holders in Hong Kong. Appendix 13 places some requirements on the issuer in relation to the company bye-laws (see paragraphs 6.21 and 6.24 above). The issuer is required to organize for the simultaneous release of information to other exchanges and to the market in Hong Kong, and for the distribution of annual reports and accounts. An accountant’s report will not normally be regarded as acceptable unless the relevant accounts have been audited to a standard comparable to that required in Hong Kong.
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Question 21 of 30
21. Question
Which of the following procedures can be adopted
I. Preparation of detailed minutes demonstrating the degree of responsibility accepted by directors
II. Execution of a responsibility statement; preparation of verification notes under which evidence is not summarized to support the facts stated in the documents
III. Distributing to all directors and others involved in the offer a memorandum setting out the legal and regulatory obligations in relation to a takeover and their potential liabilities
IV. Implementation of a due diligence programme involving financial, accounting and legal advisers with a view to not to identify material facts to be disclosedCorrect
Answer is D as a number of procedures can be adopted, including: distributing to all directors and others involved in the offer a memorandum setting out the legal and regulatory obligations in relation to a takeover and their potential liabilities; preparation of detailed minutes demonstrating the degree of responsibility accepted by directors.
Incorrect
Answer is D as a number of procedures can be adopted, including: distributing to all directors and others involved in the offer a memorandum setting out the legal and regulatory obligations in relation to a takeover and their potential liabilities; preparation of detailed minutes demonstrating the degree of responsibility accepted by directors.
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Question 22 of 30
22. Question
Which of the following statement(s) is true for The Listing Rules reflect
I. applicants are suitable for listing;
II. all holders of securities are treated fairly and equally;
III. the issue and marketing of securities is not conducted in a fair and orderly manner
IV. directors of a listed issuer act in the interests of its shareholders as a whole, particularly where the public represents only a minority of the shareholdersCorrect
Ans is D as The Listing Rules reflect (rule 2.03) currently acceptable standards in the marketplace and are designed to ensure that investors have and can maintain confidence in the marketplace and, in particular, that applicants are suitable for listing; the issue and marketing of securities is conducted in a fair and orderly manner and investors are given sufficient information to enable them to make a properly informed assessment of an issuer; investors are kept fully informed by listed issuers, and immediate disclosure is made of any information that might reasonably be expected to have a material effect on market activity in, and the prices of, listed securities; all holders of securities are treated fairly and equally; directors of a listed issuer act in the interests of its shareholders as a whole, particularly where the public represents only a minority of the shareholders; and all new issues of equity securities by a listed issuer are first offered to the existing shareholders by way of rights unless they have agreed otherwise.
Incorrect
Ans is D as The Listing Rules reflect (rule 2.03) currently acceptable standards in the marketplace and are designed to ensure that investors have and can maintain confidence in the marketplace and, in particular, that applicants are suitable for listing; the issue and marketing of securities is conducted in a fair and orderly manner and investors are given sufficient information to enable them to make a properly informed assessment of an issuer; investors are kept fully informed by listed issuers, and immediate disclosure is made of any information that might reasonably be expected to have a material effect on market activity in, and the prices of, listed securities; all holders of securities are treated fairly and equally; directors of a listed issuer act in the interests of its shareholders as a whole, particularly where the public represents only a minority of the shareholders; and all new issues of equity securities by a listed issuer are first offered to the existing shareholders by way of rights unless they have agreed otherwise.
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Question 23 of 30
23. Question
The Listing Appeals Committee will consider appeals against the decisions of the Listing Committee in which of the following matters
I. a sponsor is not acceptable by the HKEx
II. a business is unsuitable for listing
III. a listing of a listed issuer should not be canceled
IV. certain sanctions have not been imposed by the Listing Committee pursuant to disciplinary proceedingsCorrect
Ans is C as The Listing Appeals Committee will, among other things, consider appeals against the decisions of the Listing Committee in the following matters a sponsor is not acceptable by the HKEx; a business is unsuitable for listing; there has been a rejection of an application to lift a suspension of dealings, where the suspension has been in place for more than 30 days; a listing of a listed issuer should be cancelled; and certain sanctions have been imposed by the Listing Committee pursuant to disciplinary proceedings.
Incorrect
Ans is C as The Listing Appeals Committee will, among other things, consider appeals against the decisions of the Listing Committee in the following matters a sponsor is not acceptable by the HKEx; a business is unsuitable for listing; there has been a rejection of an application to lift a suspension of dealings, where the suspension has been in place for more than 30 days; a listing of a listed issuer should be cancelled; and certain sanctions have been imposed by the Listing Committee pursuant to disciplinary proceedings.
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Question 24 of 30
24. Question
Which of the following statement(s) is true for The Explanatory Statement
I. The total number of shares to be purchased
II. The source of funds to be used
III. Any material impact on the working capital or gearing
IV. The lowest prices at which the shares have traded during the past 12 months.Correct
Ans is A as The Explanatory Statement should contain the following statements on the total number of shares to be purchased; the reasons for the repurchase; the source of funds to be used; any material impact on the working capital or gearing, etc.; the names of any directors who intend to sell shares; compliance with the Exchange Listing Rules and company laws of its place of incorporation; details on purchases within the past 6 months; whether any connected person has notified the company of its intention to sell shares; and the highest and lowest prices at which the shares have traded during the past 12 months.
Incorrect
Ans is A as The Explanatory Statement should contain the following statements on the total number of shares to be purchased; the reasons for the repurchase; the source of funds to be used; any material impact on the working capital or gearing, etc.; the names of any directors who intend to sell shares; compliance with the Exchange Listing Rules and company laws of its place of incorporation; details on purchases within the past 6 months; whether any connected person has notified the company of its intention to sell shares; and the highest and lowest prices at which the shares have traded during the past 12 months.
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Question 25 of 30
25. Question
Which of the following statement(s) is true for Section 1 of Part A of Appendix 13
I. The memorandum and articles of association may not be changed without a special resolution passed by members holding three-fourths of the voting rights of those present and voting
II. The bye-laws must stipulate that for the purposes of section 47 of the Companies Act 1981 of Bermuda, the specified portion of holders of each class of shares required to sanction a resolution approving a variation of class rights shall be 75%
III. The bye-laws must state that any general meeting or extraordinary meeting at which a special resolution is to be proposed shall be convened on at least 21 days’ notice and for that with only ordinary resolutions on 14 days’ notice
IV. The bye-laws must not stipulate that for the purposes of section 47 of the Companies Act 1981 of Bermuda, the specified portion of holders of each class of shares required to sanction a resolution approving a variation of class rights shall be 75%Correct
Ans is A as Section 1 of Part A of Appendix 13 requires that the memorandum and articles of association may not be changed without a special resolution passed by members holding three-fourths of the voting rights of those present and voting; the bye-laws must stipulate that for the purposes of section 47 of the Companies Act 1981 of Bermuda, the specified portion of holders of each class of shares required to sanction a resolution approving a variation of class rights shall be 75%; the bye-laws must state that any general meeting or extraordinary meeting at which a special resolution is to be proposed shall be convened on at least 21 days’ notice and for that with only ordinary resolutions on 14 days’ notice; and payments to directors must be approved in general meeting.
Incorrect
Ans is A as Section 1 of Part A of Appendix 13 requires that the memorandum and articles of association may not be changed without a special resolution passed by members holding three-fourths of the voting rights of those present and voting; the bye-laws must stipulate that for the purposes of section 47 of the Companies Act 1981 of Bermuda, the specified portion of holders of each class of shares required to sanction a resolution approving a variation of class rights shall be 75%; the bye-laws must state that any general meeting or extraordinary meeting at which a special resolution is to be proposed shall be convened on at least 21 days’ notice and for that with only ordinary resolutions on 14 days’ notice; and payments to directors must be approved in general meeting.
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Question 26 of 30
26. Question
Which of the following statement(s) is true for appointment of auditors?
I. To deal with the security as directed by the SFC under certain circumstances
II. Companies will normally have begun to think about a listing some time ahead by discussing it with their auditors
III. Empowers the SFC to object to a listing if the applicant does not comply with the applicable rules
IV. A company can meet several larger accounting firms with such experience and then make a decisionCorrect
Answer is B as companies will normally have begun to think about a listing some time ahead by discussing it with their auditors
Incorrect
Answer is B as companies will normally have begun to think about a listing some time ahead by discussing it with their auditors
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Question 27 of 30
27. Question
As part of the capital reconstruction which of the following statement(s) is true?
I. Investors will be paid a premium for cash compared to the actual business
II. Transfer the whole or any part of the undertaking or property of any company concerned in the scheme to another company
III. The excess cash (capital) may be taken out of the company in the form of a special dividend
IV. Investors will not be paid a premium for cash compared to the actual businessCorrect
Answer is D as part of the capital reconstruction; the excess cash (capital) may be taken out of the company in the form of a special dividend.
Incorrect
Answer is D as part of the capital reconstruction; the excess cash (capital) may be taken out of the company in the form of a special dividend.
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Question 28 of 30
28. Question
Which of the following statement(s) is true for initial listing?
I. Initial Listing raises a large amount of capital, which will probably include an offer for subscription for the tranche allocated to the general public
II. Reorganization of a large PRC company will take a lot of time, energy and money to achieve
III. It is likely that the placing tranche will make up the majority of the funds being raised
IV. All listings on the Main Board will include some form of public offeringCorrect
Answer is B as initial Listing raises a large amount of capital, which will probably include an offer for subscription for the tranche allocated to the general public.
Incorrect
Answer is B as initial Listing raises a large amount of capital, which will probably include an offer for subscription for the tranche allocated to the general public.
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Question 29 of 30
29. Question
Which of the following statement(s) is true when securities are not offered to existing holders in proportion to their existing holdings?
I. Offers of securities by way of an open offer must remain open for acceptance for a minimum period of 14 days
II. An open offer may be combined with a placing to become an open offer with a claw-back mechanism
III. In cases where the issue has a large number of overseas members, a longer offer period may be desirable
IV. The securities are issued by the directors under their general mandate, an open offer requires the prior approval of shareholders in general meetingCorrect
Answer is D as the securities are issued by the directors under their general mandate, an open offer requires the prior approval of shareholders in general meeting.
Incorrect
Answer is D as the securities are issued by the directors under their general mandate, an open offer requires the prior approval of shareholders in general meeting.
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Question 30 of 30
30. Question
Following some defined terms which is correct?
I. HKEx refers to entities as defined in paragraph 1.23 above
II. ‘the Exchange’ refers to the SFO
III. ‘Listing Rules’ refers to the listing rules issued by the Exchange for the main board
Iv. ‘Board’ refers to the Board of the Exchange.Correct
Ans is D as The terminology of, say, the HKEx and the SEHK can be quite confusing. To avoid confusion in this Study Manual, we will use the following defined terms HKEx’ refers to entities as defined in paragraph 1.23 above; ‘the Exchange’ refers to the SEHK; ‘Listing Rules’ refers to the listing rules issued by the Exchange for the main board; ‘GEM Listing Rules’ refers to the listing rules issued by the Exchange for the second board, known as the Growth Enterprise Market; and ‘Board’ refers to the Board of the Exchange.
Incorrect
Ans is D as The terminology of, say, the HKEx and the SEHK can be quite confusing. To avoid confusion in this Study Manual, we will use the following defined terms HKEx’ refers to entities as defined in paragraph 1.23 above; ‘the Exchange’ refers to the SEHK; ‘Listing Rules’ refers to the listing rules issued by the Exchange for the main board; ‘GEM Listing Rules’ refers to the listing rules issued by the Exchange for the second board, known as the Growth Enterprise Market; and ‘Board’ refers to the Board of the Exchange.
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