CONFIDENTIAL
XCC(93)140
will enable the amended sections to remain on the statute book. This is desirable since there may be persons who have, in the past, suffered by reason of the operation of these sections. Such persons, if any, may still be entitled to claim compensation under section 10.
10
Clauses 5, 6, 7, 8 and 9 repeal sections 3, 6(1) and (2), 7, 8, 9(1), 10(1)(b), 11 and 12 and the Overseas Trust Bank (Compensation of Former Shareholders) Regulations. These provisions are no longer needed.
11
Section 6(1) and (2) provide for the recovery of loss arising from the disposal of assets of OTB from its former directors and officers where the disposal was made otherwise than in good faith in the ordinary course of business. Since sufficient time has passed for it to be extremely unlikely that any previously unknown disposal of assets will emerge, it is felt that the two sub-sections can now safely be repealed.
12
Section 8 enables the Financial Secretary, on behalf of Government, to guarantee any payment in respect of any liability of OTB. This is no longer required. The opportunity is also taken to cancel any guarantee that has been given.
13
Section 3 vested the shares of OTB in FSI and section 9(1) sets out the right of former shareholders to compensation subject to prescribed regulations. As the Overseas Trust Bank Compensation Tribunal has determined that no compensation is payable to former shareholders and its determination is final, we do not consider it necessary to retain these sections or the Overseas Trust Bank (Compensation of Former Shareholders) Regulations.
14
Further details of other sections to be repealed are set out in the Explanatory Memorandum of the Bill.
BANK RESCUE OPERATIONS IN THE 80's
15
Since OTB is the last of Government-owned banks to be returned to the private sector and this sale marks the end of Government's effort in rescuing banks in the 1980s, it would be appropriate to inform Members of the estimated total costs of such operations.
Executive Council