4.
COMPANIES (AMENDMENT) BILL 1988
(b) the maximum aggregate of the amounts referred to in
paragraph (a) that obtained during the financial year.".
The principal Ordinance is amended by adding, after section 161B, Addition of the following-
"Further provisions relating to loans to
officers, etc. of authorized financial institutions.
161BA. (1) A company which is, or is the holding com- pany of, an authorized financial institution shall maintain a register containing a copy of every agreement in writing relating to any transaction (or if no such document exists, a written memorandum setting out the terms of any transac- tion) of which particulars would, but for section 161B(4A), be required by section 161B to be shown in the accounts of the company (including group accounts) in respect of each finan- cial year, and such copies (or memoranda) shall be retained in the register for a period of 10 years.
(2) A company which is an authorized financial institu- tion shall before its annual general meeting make available, at the place where its register of members is kept, for a period of not less than 14 days ending on the date of the meeting and for a period of 7 days thereafter, for inspection by members of the public a statement containing the particulars of transac- tions which the company would, but for section 161B(4A), be required by section 161B to include in its accounts for the financial year preceding that annual general meeting, and such a statement shall also be made available for inspection by members of the company at the annual general meeting.
(3) It shall be the duty of the auditors of the company by whom the accounts are examined to examine the statement referred to in subsection (2) before it is made available for inspection and to make a report on the statement; and a copy of the report shall be annexed to the statement before it is so made available.
(4) A report under subsection (3) shall state whether in the opinion of the auditors the statement contains the particu- lars required by subsection (2) and where their opinion is that it does not, they shall include in the report, so far as they are reasonably able to do so, a statement giving the required particulars.
(5) If any person being a director of a company fails to take all reasonable steps to secure compliance by the com- pany with the requirements of this section, or has by his own wilful act been the cause of any default by the company thereunder, he shall be liable on conviction to imprisonment for 6 months and to a fine of $10,000.
(6) As respects an offence under this section- (a) in any proceedings against a person in respect of such an offence consisting of a failure to take reasonable steps to secure compliance by the com- pany with the requirements of this section, it shall be a defence to prove that he had reasonable ground to believe and did believe that a competent and reliable
new section 161 BA.
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