Chapter:	571	Title:	SECURITIES AND FUTURES ORDINANCE	Gazette Number:	L.N. 12 of 2003
Section:	323	Heading:	Interests and short positions to be disregarded for the purpose of notification	Version Date:	01/04/2003

(1) The following interests, and short positions, in shares comprised in the relevant share capital of a listed corporation shall be disregarded for the purposes of Divisions 2 to 4-

(a) where property is held on trust and an interest in shares is comprised in that property-
(i) an interest in reversion or remainder;
(ii) an interest of a bare trustee; and
(iii) any discretionary interest;
(b) an exempt custodian interest;
(c) subject to subsection (4), an interest in shares comprised in the property under-
(i) a collective investment scheme authorized under section 104;
(ii) a pension scheme or a provident fund scheme registered under section 21 or 21A of the Mandatory Provident Fund Schemes Ordinance (Cap 485); or
(iii) a qualified overseas scheme,
of a holder, trustee or custodian of the scheme;
(d) an interest of a person subsisting by virtue of-
(i) a charitable scheme made by order of any court of competent jurisdiction; or
(ii) the vesting of a deceased's estate in any judicial officer between the time of death of the deceased and the grant of letters of administration;
(e) an interest for the life of himself, or of another, of a person under a settlement in the case of which the property comprised in the settlement consists of or includes shares, and the following conditions are satisfied-
(i) the settlement is irrevocable; and
(ii) the settlor has no interest in any income arising under, or property comprised in, the settlement;
(f) an exempt security interest;
(g) an interest in shares of a recognized clearing house;
(h) an interest in shares of the Registrar of the High Court held in his official capacity;
(i) an interest in shares of an intermediary licensed or registered for Type 1 regulated activity where-
(i) the interest is acquired by the intermediary as an agent only for the purposes of a transaction entered into in the ordinary course of his business as such an intermediary;
(ii) the principal in that transaction is a person other than a related corporation of the intermediary;
(iii) the interest is acquired from a person other than a related corporation of the intermediary; and
(iv) the intermediary has been interested in the shares for not more than 3 business days;
(j) such interests or interests of such a class, or such short positions or short positions of such a class, as are prescribed by regulations for the purposes of this section; and
(k) subject to section 377, such interests or interests of such a class, or such short positions or short positions of such a class, as are prescribed by rules made under section 377 for the purposes of this section.

(a) has been appointed as a proxy to vote at a specified meeting of the listed corporation or of any class of its members and at any adjournment of that meeting; or
(b) has been appointed by a corporation to act as its representative at a meeting of the listed corporation or of any class of its members.

(a) it is held by a corporation which carries on a business of holding securities in custody for another person, whether on trust or by contract; and
(b) the corporation has no authority to exercise discretion in dealing in the interest, or in exercising rights attached to the interest.

(a) is established in a place outside Hong Kong recognized for the purposes of this section by the Commission by notice published in the Gazette; and
(b) is authorized by or registered with the authority (if any) responsible for the authorization or registration of such scheme in the place where it is established, and complies with the requirements of such authority,

(i) an arrangement operated by a person otherwise than by way of business;
(ii) an arrangement under which less than 100 persons hold, or have the right to become holders of, interests (whether described as units or otherwise) that entitle the holders, directly or indirectly, to the income or property of the arrangement;
(iii) an arrangement under which less than 50 persons hold, or have the right to become holders of, interests (whether described as units or otherwise) that entitle the holders, directly or indirectly, to 75% or more of the income or property of the arrangement; and
(iv) such other arrangement as may be specified by the Commission by notice published in the Gazette.

(a) the qualified lender-
(i) becomes entitled to exercise voting rights in respect of the interest in the shares held as security as a result of, or following, a default by the person giving the interest in the shares as security; and
(ii) has-
(A) evidenced an intention to exercise the voting rights or control their exercise; or
(B) taken any step to exercise the voting rights or control their exercise; or
(b) the power of sale in respect of the interest in the shares held as security becomes exercisable, and the qualified lender or its agent offers the interest in the shares held as security, or any part of that interest, for sale.

(a) the person for whose benefit the property is held is not absolutely entitled thereto as against the trustee only because he is a minor or is a person under a disability; or
(b) the trustee has the right to resort to the property to satisfy any outstanding charge or lien or for the payment of any duty, tax, cost or other outgoings.