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(b) to provide for any of three parties the directors
of an authorized institution, any auditor of the institution (including, in certain circumstances, a former auditor of the institution) and the Commissioner to call a tripartite meeting to discuss matters relating to the institution, and for any such meeting to be held notwithstanding the non-attendance by not more than one of the three parties (section 61);
(c) to provide for the Commissioner to make a complaint to the Registrar under the Professional Accountants Ordinance (Cap. 50) where he is of the opinion that there are grounds for a complaint under that Ordinance in respect of any auditor of an authorized institution (section 62);
(d) to provide for greater control over the ownership and management of authorized institutions, in particular where a person becomes entitled to exercise or control the exercise of 10 per cent or more of the voting power at any general meeting of an authorized institution incorporated in Hong Kong, in which case the Commissioner's approval is required for the exercise of the voting power (section 70), or is in effect the "controller" of an authorized institution (the definition of "controller" is in section 2(1) and section 72), in which case the Commissioner's approval is required for the controller to give directions or instructions to the directors of the institution of which he is controller;
(e) to provide for the Commissioner to issue guidelines
specifying business practices which should not be engaged in by authorized institutions where the Commissioner is of the opinion that such practices may cause the financial soundness of institutions to be dependent upon the soundness of the financial position of a single party (section 82);
(f) to provide for ensuring, by means of a capital
adequacy ratio, that authorized institutions incorporated in Hong Kong have adequate capital reserves to meet losses arising from bad debts (Part XVII and the Third Schedule); the capital adequacy ratio is a significant new requirement to be imposed on institutions and it is not intended to bring it into operation until approximately two years after the other provisions of this Ordinance are brought into operation, thus providing institutions with a period in which they can organize their affairs to ensure compliance with the ratio; and