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Powers of Governor in Council.
BANKING BILL
(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.
(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 121(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(b), 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
BANKING BILL
(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.
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Commissioner and
54. (1) The Commissioner, after consultation with the Financial Secretary, Remuneration and may at any time, whether or not the appointment of such person has terminated, fix expenses of the remuneration and expenses to be paid by an authorized institution to any person others in certain appointed by the Commissioner under section 52(1) or by the Governor in Council cases. 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.
(3) Any authorized institution aggrieved by a decision of the Commissioner under subsection (1) or (2) may appeal to the Governor in Council against the decision.
authorized
55. (1) Without limiting the generality of section 52, the Commissioner may at Examination and any time, with or without prior notice to the authorized institution, examine the investigation of books, accounts and transactions of any authorized institution and, in the case of institutions, etc. an authorized institution incorporated in Hong Kong, any local branch, overseas branch, overseas representative office or subsidiary, whether local or overseas, of such institution.
(2) Without limiting the generality of section 52, the Commissioner shall investigate the books, accounts and transactions of an authorized institution—
(a) if shareholders of the institution holding not less than one-third of the total number of issued shares in the institution, or depositors holding not less than one-tenth of the gross amount of the total deposit liabilities in Hong Kong of the institution or a sum equal to the aggregate of the paid-up share capital of the institution and its published reserve, whichever is the greater, apply to him to make such an investigation and submit to him such evidence as he considers necessary to justify the investigation and furnish such security for the payment of the costs of the investigation as he may require;
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(b) if the institution suspends payment or informs him of its intention to
suspend payment.
(3) Where an investigation is made by the Commissioner pursuant to subsec- tion (2), the Financial Secretary may order that all expenses incurred in such investigation shall be defrayed-
(a) by the authorized institution; or
(b) if the investigation was made pursuant to subsection (2)(a), either wholly by the persons who applied for the making of the investigation or partly by the authorized institution in such proportions as he considers to be just.
authorized
books, etc.
56. (1) For the purposes of an examination or investigation under section 55, Production of an authorized institution shall afford the person carrying out the examination or institution's investigation access to its books and accounts, to documents of title to its assets and other documents, to all securities held by it in respect of its customers' transactions and its cash and to such information and facilities as may be required to conduct the examination or investigation, and shall produce to the person carrying out the examination or investigation such books, accounts, documents, securities, cash or other information as he may require: