JA3AQG
ANTRAD
مين
My Man (toglane f.i.) Mir beating
здр 4 por 24/3
CONFIDENTIAL
Minister very helpful
PS/M Renton
19/3/2
HKK 102/1
M hayden, HKD
Many thanks.
Thanks.
R.
FROM: AM LAYDEN, HKD
DATE: 19 March 1986
HONG KONG: BANKING BILL
Adrienduto
2073.
1.
10% or
Mr Renton minuted on Mr Galsworthy's submission of 4
March, asking how the Hong Kong Government will be able to enforce the requirement in the Bill that any one acquiring
more of the voting shares in a bank or
deposit- taking company must obtain the approval of the
Commissioner for Banking before being able to exercise voting rights in the acquired shares: the Minister had in mind the possibility of shareholdings by nominees.
2.
banks
Commissioner
Section 64 of the Bill (pages 109-112) which requires
and deposit- taking companies to reveal to the
on demand information about companies with
which they a re connected by shareholding, and Section 70 (pages 117-119), which requires persons obtaining control
of 10% or mo re of the voting power of banks ог
deposit-taking companies to obtain the Commissioner's approval before exercising that voting power, specify severe penalties for contraventions heavy fines and up to
2 years' imprisonment. In addition, Section 71 (page 119)
invalidates resolutions of the institutions concerned made
possible by votes cast in contravention of Section 70.
3.
n ew
These sanctions should prove adequte to enforce the
rales. The attached article in this week's "Far
Eastern Economic Review" sets the Bill in the context of
the general tightening up of the rules about disclosure of ownership of companies in Hong Kong which i s currently
taking place, and notes that the staff of the Banking
Commission are being increased from 160 to around 200.
Commissioner of Banking, Mr Robert Fell, is quoted as
saying he i s confident that he can cope with the
enforcement of the rules set out in the Bill.
The
CONFIDENTIAL