52
53
Limitation on shareholding
by bank.
Limitation on
shareholding by deposit-taking company.
Limitation on
holding of interest
in land by bank.
(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.
87. (1) Subject to subsection (2), a bank shall not acquire or hold any part of the share capital of any other company or companies to an aggregate value in excess of 25 per cent of the paid-up capital and reserves of the bank, except such shareholdings as a bank may acquire in the course of the satisfaction of debts due to it:
Provided that all shareholdings acquired in the course of the satisfaction of debts due to it shall be disposed of at the earliest suitable opportunity, and in any event not later than 18 months after the acquisition thereof or within such further period as the Commissioner may allow in any particular case.
(2) This section shall not apply in respect of any shareholding approved in writing by the Commissioner in another bank or in a subsidiary company formed by the bank concerned for the carrying out of nominee, executor or trustee functions or other functions incidental to banking business.
(3) Every director and every manager of a bank which contravenes subsec- tion (1) commits an offence and is liable---
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues; 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.
88. (1) Subject to subsections (2), (3) and (4), a deposit-taking company shall not acquire or hold any part of the share capital of any other company or companies to an aggregate value in excess of 25 per cent of the paid-up capital and reserves of the deposit-taking company, except such shareholdings as the deposit-taking company may acquire in the course of the satisfaction of debts due to it."
(2) Subsection (1) shall not apply where a deposit-taking company acquires or holds any part of the share capital of any other company or companies under an underwriting or sub-underwriting contract for a period not exceeding 3 months or such further period or periods as the Commissioner may allow in any particular case.
(3) All shareholdings acquired in the course of the satisfaction of debts referred to in subsection (1) shall be disposed of at the earliest suitable opportunity, and in any event not later than 18 months after the acquisition thereof or within such further period as the Commissioner may allow in any particular case.
(4) Every director and every manager of a deposit-taking company which contravenes this section commits an offence and is liable-
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues; 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.
89. (1) A bank shall not purchase or hold any interest or interests in land situated in or outside Hong Kong of a value or to an aggregate value, as the case may be, in excess of 25 per cent of the paid-up capital and reserves of the bank.
(2) Subject to section 92(1)(b), in addition to the value of any land permitted to be purchased or held under subsection (1), a bank may purchase or hold interests in land situated in or outside Hong Kong to any value, where the occupation of such land is, in the opinion of the Commissioner, necessary for conducting the business of the bank or for providing housing or amenities for the staff of the bank.
(3) For the purposes of subsection (2), but without limiting the generality thereof, the Commissioner may in his discretion regard as necessary for conducting the business of a bank the whole of any premises in which an office of a bank is situated.
(4) There shall not be taken into account in the assessment of the value of interests in land for the purposes of this section the value of any interest in land mortgaged to the bank to secure a debt due to the bank nor the value of any interest in land acquired pursuant to entry into possession of land so mortgaged, provided that the interest acquired is disposed of at the earliest suitable opportunity, and in any event not later than 18 months after its acquisition or within such further period as the Commissioner may allow in any particular case.
(5) Every director and every manager of a bank which contravenes this section commits an offence and is liable-
(a) on conviction upon indictment to a fine of $200,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues; 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.
90. (1) A deposit-taking company shall not purchase or hold any interest or interests in land situated in or outside Hong Kong of a value or to an aggregate value, as the case may be, in excess of 25 per cent of the paid-up capital and reserves of the deposit-taking company.
(2) In addition to the value of any land purchased or held under subsection (1), a deposit-taking company may purchase or hold interests in land situated in or outside Hong Kong to any value, where the occupation of such land is, in the opinion of the Commissioner, necessary for conducting the business of the deposit-taking company or for providing housing or amenities for the staff of the deposit-taking
company.
(3) The aggregate value of interests in land purchased or held under subsec- tions (1) and (2) shall not exceed the aggregate amount of the paid-up capital and reserves of the deposit-taking company.
(4) For the purposes of subsection (2), but without limiting the generality thereof, the Commissioner may in his discretion regard as necessary for conducting the business of a deposit-taking company the whole of any premises in which an office of a deposit-taking company is situated.
(5) There shall not be taken into account in the assessment of the value of interests in land for the purposes of this section the value of any interest in land mortgaged to the deposit-taking company to secure a debt due to the deposit-taking company nor the value of any interest in land acquired pursuant to entry into possession of land so mortgaged, provided that the interest acquired is disposed of at the earliest possible opportunity, and in any event not later than 18 months after its acquisition or within such further period as the Commissioner may allow in any particular case.
(6) Every director and every manager of a deposit-taking company which contravenes this section commits an offence and is liable-
(a) on conviction upon indictment o a fine of $200,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $10,000 for every day during which the offence continues; or
Limitation on
holding of interest in land by deposit- taking company.