A
For decision
CONFIDENTIAL
on 3 October 1989
THE PROBLEM
HKCIC2/3.
XCC (89)133 Copy No.
MEMORANDUM FOR EXECUTIVE COUNCIL
Bank Notes Issue Ordinance
(Chapter 65)
BANK NOTES ISSUE (AMENDMENT) BILL 1989
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Mc Ho
PA subject
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The Hongkong and Shanghai Banking Corporation (HSBC) intends to register itself under Part IX of the Companies Ordinance (Chapter 32). One effect of this action will be to change the name of the bank by adding the word "Limited" to the end of its present name. We need to ensure that bank notes bearing the old name can still be lawfully issued.
RECOMMENDATION AND ADVICE SOUGHT
2
It is recommended that the Bank Notes Issue (Amendment) Bill 1989, at Annex A, should be introduced into the Legislative Council.
3
Members will be asked to advise whether this recommendation should be approved.
6/10
BACKGROUND AND ARGUMENT
4
HSBC is a note-issuing bank under the Bank Notes Issue Ordinance. There is currently a total face value of about HK$28000 million of bank notes issued by HSBC in circulation. Sizeable additional stocks have been made and are held at the bank's vault to meet demand. All the notes
bear the current name "The
"The Hongkong and Shanghai Banking Corporation". The cost of printing of bank notes is borne by Government for the account of the Exchange Fund.
5
HSBC announced in August that it proposed to modernise the statutory framework of the bank. With the approval of shareholders, obtained at an Extraordinary General Meeting held on 19 September 1989, HSBC will seek to register itself under Part IX of the Companies Ordinance. As HSBC will be registering with limited liability, the word "Limited" must form part of its name with effect from the date of registration, which is intended to be 6 October 1989. Consequently, the bank' S name will change to "The Hongkong and Shanghai Banking Corporation Limited" date.
on
that
CONFIDENTIAL