46
they have been given a right to undertake banking business
with the capital approved in their Memoranda of Association
and that this right cannot be taken away by subsequent
legislation.
39. We concede that existing Banks may have acquired
certain rights by incorporation in conformity with the Law
for the time being. If, however, the legislator requires
for the public good to alter the Law, while careful to
respect these acquired rights, the fact that the Company or
Co-operative Society has been incorporated with a certain
capital and with certain powers does not appear to us to
constitute an acquired right for the Company or Society to
do things which the experience necessitating the issue of
a subsequent Law makes clear should not be done or should
only be done in a way or under certain conditions prescribed
by amendments of that Law.
40. We do not, however, desire to precipitate a
crisis and we think that there would be hardship in
applying our recommendation as to a minimum paid-up capital
or "own funds" of £P.25,000 uncompromisingly in the present
case. On the other hand it is impracticable to
differentiate between existing and new companies and
societies in this respect for ever. We therefore think
that existing companies or societies which do not fulfil
this condition should be given a reasonable time, say one
year, within which they must find a capital or "own funds"
of £P.10,000 and a further period of two years for raising
their capital or "own funds" to £P.25,000. If commercial
Banks have not at the end of the period of grace complied
with the condition, we consider that they should be
compulsorily liquidated under supervision of Government so
as to avoid undue hardship and losses to depositors
having