2
2
noted a
7. If any company registered under the Companies Chauthorised Ordinances, 1911-1915, whose objects include the issue of bank transaction of banking business, issues or reissues ground for any bank note without the sanction of the Secretary winding up. of State for the Colonies, before or after the corn- Ordinances
Now 38 of mencement of this Ordinance, either within or without 1911 & 31 the Colony, the issuing or reisening of any such of 1915, bank note shall be a ground upon which an order for the winding up of the company may be made by the
court.
8. Every person who commits an offence against this reunity. Ordinance shall be liable on summary conviction to a fine not exceeding one thousand dollars, and in the case of a second or subsequent conviction to imprisonment for any term not exceeding three months and to a fine not exceeding one thousand dollars; provided that if the offender be a corporate body it shall be liable on a second or subsequent conviction to a fine not exceeding five thousand dollars.
9. This Ordinance shall not come into operation until Connees
a date to be fixed by proclamation by the Governor.
10. The Bank Notes Issue Ordinance, 1895, repealed.
ment.
is Repeal of
Onlinance
No. 2 of 1895,
7
Objects und Reasons,
1. The main object of this bill is to prevent the unau- thorised issue of bank notes outside the Colony by banking companies registered under the Hongkong It is believed that the fact of Companies Ordinances. registration in the Colony is to some extent taken by the public as a guarantee of the financial position of the company and the security of its note issue, and that any failure on the part of the company would be likely to have an adverse effect on the prestige of British banks in the Colony.
2. In clause a definition of "bank note", taken from
54 & 55 Viet. u. 39, has been included, and the definition
of "bank has also been adapted from that. Act.
3. Clauses 3 and 1 reenact in a slightly different form sections 3 and 4 of Ordinance No. 2 of 1895.
4. Clause 5 reenacts in an extended form the earlier part of section of Ordinance No. 2 of 1895, and particularises. in the case of corporate bodies, natund persons and firms, the liability for offences under the Ordinance.
5. Clause 6 is inserted with the object of saving the rights of the holder of any bank note issued by any corporate body, person or firm.
6. Clause 7 provides that the anthorised issue of bank notes by banking companies registered in the Colony under the Companies Ordinances, 1911-1915, shall be a ground for winding up by the Court.
7. Clause 8 reenacts as a separate section the latter
part of section 5 of Ordinance Xo. 2 of 1897,
8. Clause 9 suspends the operation of the bill until a date to be proclaimed, the object being to allow banking companies time to stop issuing notes, or to take steps with a view to winding notes,
9. Clause 10 repeals Ordinance No. 2 of 1895,
J. II. Keur,
Afturury Gruevni,
20th May, 1921.
602