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the guidance of authorized institutions indicating the manner in which he proposes to exercise his statutory functions. He may in particular specify business practices which should not be engaged in by authorized institutions for fear of causing dependence on the financial soundness of a single party. This replaces the former provision by which the Commissioner would have issued directions rather than guidelines in this
respect. Clause 86 which contains prohibitions on authorized institutions engaging in certain trades will be deleted, and the intention is that these will instead be covered by guidelines under clause 7.
As a result of the specific recommendations of the Ad Hoc Group, the following amendments will also be moved:-
(a)
(b)
Clause 71 will be deleted. This would have
rendered void a resolution passed by the
exercise of voting power in excess of the specified percentage (10% or more) without the approval of the Commissioner. The implications of declaring such a resolution void would have
been very far reaching.
Clause 70 (1) will be amended to remove the
restriction which would otherwise apply to the
exercise of voting power by the holding company
of an authorized institution as this would be
remote from the real mischief.
(c)
Clause 62 will be amended to provide that the Commissioner's complaints against auditors shall be made to the Registrar of the Society
rather than its Disciplinary Committee, to
accord with normal procedures.