FR AY, JUNE 7, 1985
3
BILL PROVIDES FOR SHARE TRANSFER TO GOVERNMENT
*****
THE IMMEDIATE EFFECT OF THE OVERSEAS TRUST BANK (ACQUISITION) BILL 1985 IF PASSED WOULD BE TO ENABLE SHARES IN THE BANK TO BE TRANSFERRED AS A MATTER OF LAW FROM PREVIOUS SHARE-HOLDERS TO THE GOVERNMENT, OR MORE STRICTLY, TO THE COLONIAL TREASURER INCORPORATED, THE ATTORNEY GENERAL, THE HON MICHAEL THOMAS SAID IN THE LEGISLATIVE COUNCIL.
SPEAKING BRIEFLY ON THE BILL, FOLLOWING THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE'S SPEECH, MR THOMAS SAID, THE SECOND EFFECT WAS TO ENABLE THE BANK ON MONDAY TO CONTINUE TO TRADE AND TO OVERCOME ITS PRESENT DIFFICULTY OF DECLARED INSOLVENCY, BY REASON OF THE GUARANTEES WHICH UNDER SECTION 8
CHARGED ON THE FINANCIAL SECRETARY WAS EMPOWERED TO GIVE AND ISSUED OUT OF THE EXCHANGE FUND.
+SO THE NATURE OF THE LEGISLATION IS FOUNDED ALMOST ENTIRELY EXCEPT THE SECTION 8, UPON THAT MODEL WHICH WAS BEFORE THIS COUNCIL SOME 20 MONTHS AGO WHEN THE HANG LUNG BANK WAS IN SIMILAR CIRCUMSTANCES TAKEN OVER, SO TO SPEAK, BY THE GOVERNMENT.
+THAT MODEL HAS BEEN FOUND SATISFACTORY BECAUSE NO EXPERIENCE OF THE BOARD OF THE HANG LUNG BANK POINTS TO THE NEED TO IMPROVE THE METHOD THAT WAS THEN CHOSEN AND TONIGHT WOULD BE REPEATED IF THIS BILL IS PASSED, HE SAID.
DRAWING ATTENTION TO THE MAIN SECTION OF THE BILL, MR THOMAS SAID SECTION 3 IS THE KEY TO THE TRANSFER OF ALL THE SHARES IN THE CAPITAL OF THE COMPANY +FROM WHOMSOEVER PRESENTLY HAVING THEM TO THE COLONIAL TREASURER INCORPORATED AND WITH IT ALL THE RIGHTS. PRIVILEGES AND ADVANTAGES AND ALL LIABILITIES AND OBLIGATIONS ARISING FROM HOLDING OF THOSE SHARES.+
AND SUBSECTION 3 PROVIDED FOR THE TRANSFER TO BE REGISTERED SO THAT THE COLONIAL TREASURER SHOULD BE THE REGISTERED OWNER OF THOSE SHARES, HE SAID.
HE SAID THAT SECTION 4 WAS A CONVENIENT SECTION TO INCLUDE BECAUSE IT MEANT THAT THE BANK WOULD CONTINUE TO OCCUPY ANY PREMISES WHICH IT DID NOT OWN AT PRESENT. AND IN THAT WAY, THERE WOULD BE NO INTERRUPTION IN THE BUSINESS OR THE ACTIVITIES OF THE BANK BY REASON OF THE FACT THAT THE SHAREHOLDING HAD ENTIRELY CHANGED.
+ IT WOULD NOT, FOR EXAMPLE, BE OPEN TO ANY PREVIOUS DIRECTOR OR ANY PREVIOUS SHAREHOLDER TO DENY THE BANK THE USE OF PREMISES AFTER THE PASSING OF THIS BILL. THAT USE WOULD CONTINUE ON THE SAME TERMS AND CONDITIONS AS ENJOYED PREVIOUSLY, HE SAID.
+THEN, UNDER SECTION 5, THERE IS A DETERMINATION OF ANY RIGHT TO ACQUIRE SHARES, SO IF ANYONE OF ITS PRESENT CLIENTS HAD SOME RIGHT TO PURCHASE ANY SHARES IN THE COMPANY. THAT RIGHT WOULD DETERMINE, AND SO WOULD ANY RIGHT TO NOMINATE DIRECTORS OR EXERCISE CONTROL.
/+THEN UNDER