Addition of
new section
51A.
12. The principal Ordinance is amended by adding, after section 51. the following new section-
**Privole COMPANY to
bave L
last one
director.
(p. 32,3
Amendment pl section 14.
13.
(a)
Adulto of Terection SEA.
51A. Where an applicant is a corporation and is a private company within the meaning of the Companies Ordinance, the Commissioner shall not register the applicant as a dealer or as an investment adviser voless the corporation has at least one director thereof.".
Section 52 of the principal Ordinance is amended-
by inserting, after subsection (1), the following new subsection— "(1A) Subject to subsection (6), where an applicant is a corporation the Commissioner shall not register the cor- poration as a dealer unless there has been deposited with the Commissioner in respect of each director of the corpora- tion who actively participates in, or is in any way directly responsible for, the corporation's business of dealing in securities in Hong Kong such amount as is prescribed in regulations.";
(6) in subsections (5), (6), (9)«), (10) and (11) by deleting "subsection
(1) and substituting the following-
"this section";
(c) in subsection (6) by deleting paragraph (0) and substituting the
following-
"(a) a dealer who carries on a business of dealing in securitics
only in the capacity of a stockbroker:"; and
(d) by inserting, after subsection (8), the following new subsection—
“(BA) Any document relating to the investment of money under subsection (8) may be kept in the office of the Com- missioner or deposited by him for safe keeping with a licensed bank.",
14. The principal Ordinance is amended by adding, after section 52, the following new section-
""ACCOUNTS
sound
dermkest under section 5.
52A. (1) The Commissioner shall keep proper accounts of all sums deposited under section $2, and shall in respect of the Anancial year beginning before and ending after the day on which this section commences, and in respect of each subsequent financial year, prepare a revenue and expenditure account, and a balance sheet made up to the last day of that year.
(2) The Commissioner shall appoint an auditor who shall audit the accounts kept under subsection (1) and shall audit and prepare an auditor's report in respect of each balance sheet and revenue and expenditure account prepared under subsection (1) and shall submit the report to the Commissioner.
(3) Not later than the 31st July in each year the Com- missioner shall cause a copy of the audited balance sheet, revenue and expenditure account and the auditor's report to be sent to the Financial Secretary.".
7
15. Section 53(1)(b) of the principal Ordinance is amended by insert- Amcadmear of ing, after sub-paragraphi (iii), the following new sub-paragraph-
(a) where the application is for registration as a dealer, no director of the applicant is, or is in the opinion of the Commissioner likely to be, registered as a dealer, or where the application is for registration as an investment adviser, no director of the applicant is, or is in the opinion of the Commissioner likely to be, registered as an investment adviser;".
pection $3.
16. Section 55 of the principal Ordinance is amended by deleting Amendment of subsection (5) and substituting the following—
"(5) Every decision of the Commissioner revoking or suspending the registration of a registered person shall be notified to that person in writing and shall include a stalement of the reasons on which it is based and take effect from the date on which it is notified to thal person or such later date us is specified in the notios".
section $5.
17. Section 56 of the principal Ordinance is amended by deleting Amendman of subsection (4) and substituting the following-
Action $6.
"(4) Every decision of the Commissioner imposing a penalty under subsection (2) on a person shall be notified to that person in writing and shall include a statement of the reasons on which it is based and lake effect from the date on which it is notified to him, or such later date as is specified in the notice, notwithstanding that an appeal against the decision may be made under section 58 or that the time limited for the making of such an appeal has not expired.".
18. Section 61(1)(a) of the principal Ordinance is amended by deleting Amroumicon of "only to a person" and substituting the following-
"mainly to persons".
Akod Gl
19. Section 68 of the principal Ordinance is amended by deleting Ameodem of subsection (1) and substituting the following-
"(1) A person to whom this Part applies shall notify in writing to the Commissioner the place at which he keeps or intends to keep the register of his interests in securities.",
20. Section 72 of the principal Ordinance is amended—
(a) by deleting subsection (4) and substituting the following-
"(4) Where any person has accepted an offer for the disposal or acquisition of securities under this section and the offer has been made without the requirements of subsection (1) and subsection (2) baving been complied with in a material particular, that person may, subject to the rights of any bona fide purchaser of the securities for value, rescind the acceptance, by notice in writing, within 14 days after the date of the acceptance.",
(b) in subsection (5)b), by deleting "or" where it last appears; and (c) by inserting in subsection (5)c), after "paragraph;", the
following-
**or".
Action 68.
Amendment of secdon 72