35
Control of authorized
institution by the Commissioner.
Authorized institution under control of
Commissioner to
co-operate with Commissioner.
Provided that, so far as is consistent with the conduct of the examination or investigation, such books, accounts, documents, securities and cash shall not be required to be produced at such times and such places as shall interfere with the proper conduct of the normal daily business of the institution.
(2) Every director and every manager of an authorized institution which contravenes this section commits an offence and is liable-
(a) on conviction upon indictment to a fine of $100,000 and to imprisonment
for 12 months; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months,
and, in the case of a continuing offence, to a further fine of $5,000 for every day during which the offence continues.
(3) If any authorized institution produces any book, account, document, security or information whatsoever under this section which is false in a material particular, every director and every manager of the institution commits an offence and is liable-
(a) on conviction upon indictment to a fine of $500,000 and to imprisonment
for 2 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for 6
months.
57. (1) 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), then, subject to subsection (2), the Commissioner or such other person, as the case may be, shall remain in control and continue to carry on the business of that institution in the name and on behalf of the institution until it is no longer necessary, in the opinion of the Financial Secretary, for the Commissioner or such other person to remain in control of the institution.
(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 Governor in Council, upon the application of the institution, may, if he is satisfied that it is no longer necessary for the protection of the depositors of the institution that the Commissioner or such other person should remain in control of the business of the institution, order that the Commissioner or such other person shall cease to control the business of the institution as from a date specified in the order.
(3) 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) or any such control has been relinquished pursuant to any of the provisions of this section, the Financial Secretary shall cause to be published in the Gazette a notification of the fact of the assumption or cessation of such control, as the case may be.
58. (1) 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 institution shall submit its business to the control of the Commissioner or such other person and shall
provide him with the services of such members of its staff and such other facilities as he may consider necessary for carrying on the business of the institution and in connexion therewith the directors and managers shall comply with and carry out any directions which the Commissioner or such other person may give to them.
(2) Without limiting the generality of subsection (1), where by reason of the absence of directors or for any reason whatsoever the seal of an authorized institution whose business is-
(a) in the control of the Commissioner under section 52(1)(C) or pursuant to
an order of the Governor in Council under section 53(1)(ii); or (b) in the control of some other person pursuant to a direction under sec- tion 52(1)(C) or an order of the Governor in Council under section 53(1)(ii), cannot be affixed to an instrument in accordance with the institution's articles of association or regulations, the seal may be affixed in the presence of, and its affixing may be attested by, the Commissioner or such other person or a person authorized for the purpose by the Commissioner or such other person.
(3) Where the seal of an authorized institution has been affixed to an instru- ment, and the affixing thereof has been attested, in accordance with subsection (2), no person shall be concerned to see that the seal could not be affixed in accordance with the institution's articles of association or regulations.
(4) Every director and every manager
(a) of an authorized institution which contravenes subsection (1); or
(b) who fails to comply with or to carry out any direction given by the
Commissioner or some other person under subsection (1),
commits an offence and is liable-
(i) 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
(ii) 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.
PART XI
AUDITS AND MEETINGS
59. (1) Every authorized institution which is a company, and its auditors, shall Audit. comply with the Companies Ordinance with respect to the audit of a company's (Cap. 32.) accounts, whether or not the institution is incorporated under that Ordinance.
(2) The Commissioner may appoint another auditor to act with the auditor appointed by an authorized institution in accordance with the Companies Ordinance or, in the case of an authorized institution which is an unincorporated bank, section 114.
(3) The Commissioner 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 auditor appointed by the Commissioner under sub- section (2).
(4) Any authorized institution aggrieved by a decision of the Commissioner under subsection (3) may appeal to the Governor in Council against the decision.
(5) Every director and every manager of an authorized institution which contravenes subsection (1) commits an offence and is liable--
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment
for 2 years; or
(b) on summary conviction to a fine of $50,000 and to imprisonment for
6 months.