Powers and duties of auditors.
Auditor need not be shareholder.
Director not to be
auditor.
Resignation
or removal
of auditor.
When
accounts to
be deemed
fiually settled.
Publication of yearly statements.
334
148.--(1) Every auditor shall at all reasonable times have a right of access to the books and accounts and vouchers and returns of the Bank in the Colony and shall be entitled to require from the Directors and officers of the Bank such information and explanations as may
be necessary for the performance of his duties, but as regards the books and accounts of any establishment beyond the limits of the Colony it shall be sufficient if the auditors be allowed access to such copies thereof and extracts therefrom as have been transmitted to the Head Office.
(2) The auditors shall make a report to the shareholders on the accounts examined by them, and on every balance sheet laid before the shareholders in general meeting during their tenure of office, and the report shall state-
(a) Whether or not they have obtained all the information and
explanations they have required and,
(b) Whether, in their opinion, the balance sheet referred to in the report is a full and fair balance sheet properly drawn up, so as to exhibit a true and correct view of the state of the Bank's affairs according to the best of their information and the ex- planations given to them, and as shown by the books and returns of the Bank.
149. It shall not be requisite that an auditor be a shareholder, but the auditors may be shareholders of the Bank.
150. If an auditor be appointed a Director or other Officer or servant of the Bank, he shall immediately thereupon cease to be an auditor.
151. Any auditor may resign his office or may be removed from office by a vote of any general meeting, or may, subject to the approval of the Governor, be removed by the Board.
152. Every profit and loss account and balance sheet, when audited and approved by a general meeting, shall be conclusive, except as regards any error discovered therein within three months next after the approval thereof. Whenever any such error is discovered within that period, the account shall forthwith be corrected, and thenceforth shall be conclusive.
Yearly Statements.
153. The Board, from time to time, as soon as can be after the expira- tion of every year ending the 31st day of December, shall make a general statement in writing, showing therein the amount of the then debts, liabilities, and engagements and of the assets, property, credits and securities of or belonging to the Bank, as well in Hongkong as elsewhere, and such statement shall include an account of the amount of the promissory notes of the Bank in circulation, and of the coin held in the several establishments of the Bank, such accounts of promissory notes and coin respectively being made from and according to the then last returns and information furnished to the Directors from the establishments of the Bank; and the Board shall send one copy of every such general yearly statement authenticated by the signatures of the Chairman of the Board, or of two Directors, and of the Chief Manager or Chief Accountant in Hongkong, to the Governor and shall immediately afterwards publish such statement in the Gazette and in such other newspapers circulating in the places where the business of the Board shall be carried on as the Governor may, from time to time, require; and shall also make and publish and cause to be made and published by the officers, servants and agents of the Bank, at the several establishments of the Bank, such further returns as to the amount of the promissory notes of the Bank in circulation at such establishments respectively, and the amount of coin and bullion held in such establishments respectively, as the Governor shall, from time to time, require; such returns to be made to such persons, and published in such manner as the Treasury shall direct, and the Board shall obey and cause to be obeyed by the officers, servants, and agents of the Bank at the several establishments of the Bank, all such rules as the Governor shall, from time to time, make for the verification of such returns and the inspection of the coin and bullion held in the establishments of the Bank by such person and in such manner as the Governor shall think fit.
!
Page 35Page 36