C6
COMPANIES (AMENDMENT) BILL 1988
person was charged with the duty of seeing that those requirements were complied with and was i position to discharge that duty; and
(b) a person shall not be sentenced to imprisonment for such an offence unless, in the opinion of the court dealing with the case, the offence was committed wilfully.
(7) The statement referred to in subsection (2) shall be made available for inspection during business hours (subject to such reasonable restrictions as the company may by its articles or in general meeting impose, so that not less than 2 hours in each day be allowed for inspection) by any member of the company, without charge and by any other person on payment of $5, or such less sum as the company may prescribe, for each inspection.
(8) Any member of the company or other person may require a copy of the statement referred to in subsection (2), or any part thereof, on payment of 25 cents, or such less sum as the company may prescribe, for every 100 words or fractional part thereof required to be copied. The company shall cause any copy so required by any person to be sent to that person within a period of 10 days commencing on the day next after the day on which the requirement is received by the company.
(9) If any inspection required under this section is refused or if any copy required under this section is not sent within the proper period, the company and every officer of the company who is in default shall be liable to a default fine.
(10) In the case of any such refusal or default, the court may by order compel an immediate inspection of the state- ment or direct that the copies required shall be sent to the person requiring them.".
Explanatory Memorandum
The purpose of this Bill is to amend the provisions of the Companies Ordinance requiring disclosure of particulars of loans, and of transactions relating to loans, to directors and others, in their application to companies that are banks or deposit-taking companies licensed or registered under the Banking Ordinance ("authorized financial institutions").
2. Clause 3 amends section 161B to provide a limited exemption for authorized financial institutions and their holding companies from the requirement to provide particulars of loans and of transactions relating to loans, made to directors and others in their annual accounts. The exemp- tion only applies if the amount lent and the terms of the transaction are not concessionary or, where they are concessionary, if the total value of all such transactions involving the person concerned does not exceed $10,000,000.
3. Clause 4 inserts a new section 161BA requiring authorized finan- cial institutions and their holding companies to maintain a register of the transactions referred to in section 161B and requiring authorized financial