A172
Ord. No. 27/86
BANKING
f
BANKING
Ord. No. 27/86
A173
Powers of Commissioner.
(2) An authorized institution incorporated in Hong Kong that is maintaining, at the commencement of this Ordinance, an overseas branch or overseas representa- tive office to which section 49(3) applies shall, so long as the branch or representative office continues to be maintained by the institution, pay to the Director of Accounting Services the fee specified in the Second Schedule on the anniversary in each year of the date on which the institution was licensed or registered, as the case may be.
PART X
Powers of Control OVER AUTHORIZED INSTITUTIONS
52. (1) Where-
(a) an authorized institution informs the Commissioner—
(i) that it is likely to become unable to meet its obligations; or (ii) that it is insolvent or about to suspend payment;
(b) an authorized institution becomes unable to meet its obligations or suspends
payment;
(c) after an examination or investigation is made under section 55, the Commis-
sioner is of the opinion that an authorized institution----
(i) is carrying on its business in a manner detrimental to the interests of its depositors or of its creditors;
(ii) is insolvent or is likely to become unable to meet its obligations or is about to suspend payment;
(iii) has contravened or failed to comply with any of the provisions of this Ordinance; or
(iv) has contravened or failed to comply with any condition attached to its licence or registration, the condition specified in section 49(1), the condition specified in section 50(1) or the condition specified in sec- tion 50(2); or
(d) the Financial Secretary advises the Commissioner that he considers it in the
public interest to do so,
the Commissioner, after consultation with the Financial Secretary, may exercise such one or more of the following powers as may from time to time appear to him to be necessary---
(A) to require the institution forthwith to take any action or to do any act or
thing whatsoever in relation to its business as he may consider necessary; (B) to appoint a person to advise the institution in the proper conduct of its
business;
(C) to assume control of and carry on the business of the institution, or direct some other person to assume control of and carry on the business of the institution;
(D) to report the circumstances to the Governor in Council.
(2) Except in the circumstances specified in subsection (1)(a), the Commissioner shall not exercise the power conferred by subsection (1)(D) unless he has given to the authorized institution not less than 7 days' notice in writing of his intention to exercise such power and a statement in writing of his reasons for the exercise thereof, and has afforded the institution an opportunity to submit to him representations in writing thereon, and any such representations shall form part of his report to the Governor in Council.
(3) Any person aggrieved by the exercise by the Commissioner of any of the powers conferred on him by subsection (1)(A), (B) and (C) may appeal to the Governor in Council against the exercise of those powers, but that exercise of those powers shall take effect immediately, notwithstanding that an appeal has been or may be made under this subsection.
(4) Every director and every manager of an authorized institution which fails to comply with any requirement of the Commissioner under subsection (1)(A) commits an offence and is liable--
(a) on conviction upon indictment to a fine of $1,000,000 and to imprisonment for 5 years and, in the case of a continuing offence, to a further fine of $50,000 for every day during which the offence continues; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
53. (1) Where-
(a) the Commissioner makes a report to the Governor in Council under sec-
tion 52(1)(D);
(b) any person appeals to the Governor in Council under section 52(3); or (c) the Financial Secretary refers a report and his recommendations thereon to
the Governor in Council under section 117(5)(c),
the Governor in Council may, without prejudice to the powers conferred on him, the Commissioner or the Financial Secretary, as the case may be, by section 29(h), 31(1)(i) or 32(1)(i) or Part VI, exercise one or more of the following powers-
(i) to confirm, vary or reverse any requirement, appointment or direction made
by the Commissioner;
(ii) to make such order as he may think fit in relation to the affairs of the authorized institution and exercise any power which the Commissioner may exercise under section 52(1);
(iii) to direct the Financial Secretary to present a petition to the High Court for the winding-up of the authorized institution or former authorized institu- tion by the High Court.
(2) The Governor in Council may, before considering any report or appeal under subsection (1), seek the advice of the Banking Advisory Committee or the Deposit-taking Companies Advisory Committee, or both, but shall not be bound to follow any such advice.
(3) Every director and every manager of an authorized institution which fails to comply with an order of the Governor in Council under subsection (1)(ii) commits an offence and is liable-
(a) on conviction upon indictment to a fine of $1,000,000 and to imprisonment for 5 years and, in the case of a continuing offence, to a further fine of $50,000 for every day during which the offence continues; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
54. (1) The Commissioner, after consultation with the Financial Secretary, may at any time, whether or not the appointment of such person has terminated, fix the remuneration and expenses to be paid by an authorized institution to any person appointed by the Commissioner under section 52(1) or by the Governor in Council under section 53(1) to advise the institution in the proper conduct of its business.
(2) Where the Commissioner has assumed control of the business of an authorized institution under section 52(1)(C) or pursuant to an order of the Governor in Council under section 53(1)(ii) or some other person has assumed control of the business of an authorized institution pursuant to a direction under section 52(1)(C) or an order of the Governor in Council under section 53(1)(ii), the Commissioner, after consultation with the Financial Secretary, may at any time, whether or not he or such other person has ceased to be in control of the business of the institution, fix the remuneration and expenses to be paid by the institution to him, and to any person employed or authorized by him under section 8 to assist him in the control of and the carrying on of the business of the institution, or to such other person, as the case may be.
Powers of
Governor in Council.
Remuneration and expenses of others in certain cases.
Commissioner and