5
the whole with this polaily but considered that
there should not be a flat rate universal minimum
but that it should be related either to the area
to be served or to the magnitude of the bank's
operations or both.
The present Ordinance does
not prescribe the minimum amount of capital, but
Section 353 (1) authorised the Governor in Council
to prescribe the amount of authorised and paid
up capital in the case of new banks coming into
operation after the Ordinance. Section 354 (1)
also provides that such banks must have at least
half of the amount of authorised capital bona
fide paid up in cash. (This follows the India
Office suggestion that it is important to
prescribe a minimum relationship between paid up
subscribed and authorised capital and to prevent
the abuse of a large authorised capital).
3) that local banks should submit annually
in a revised form a statement of assets and
liabilities to the Registrar of Companies, and
that all banks should submit a quarterly statement
to the Treasurer who would publish a summary of
banking business without disclosing names or
positions of banks. Both Sir Percy Ezechiel
and the Treasury agreed to the necessity of the
submission of proper statements but considered
that the publication of annual balance sheets
in standard form was also most desirable as a
public safeguard. Section 375 of the Ordinance
provides that the balance sheet with a copy of
the Auditor's report of every Savings Bank
Land Chunline in are English daily newspape Company shall be published in English and two
Chinese newspapers not less than seven days
before