WEDNESDAY, DECEMBER 2, 1992
AT PRESENT, ONE OF THESE REQUIREMENTS IS THAT THE COMPANY MUST HAVE A MINIMUM ISSUED AND FULLY PAID-UP SHARE CAPITAL OF $1 MILLION AND DEPOSIT CERTAIN INVESTMENTS WITH THE DIRECTOR OF ACCOUNTING SERVICES TO A VALUE OF NOT LESS THAN $500,000.
HE SAID THE BILL PROPOSED TO ADJUST THE FIGURES TO $3 MILLION AND $1.5 MILLION RESPECTIVELY.
TURNING TO THE REGULATION OF TRUST COMPANIES, MR NENDICK SAID IT HAD BEEN DIFFICULT FOR THE REGISTRAR OF COMPANIES TO TAKE EFFECTIVE ENFORCEMENT ACTION BECAUSE OF THE LACK OF SUITABLE SANCTIONS AGAINST BREACHES OF A NUMBER OF PROVISIONS.
EXAMPLES
TRUST COMPANY,
INCLUDE SECTION 81, WHICH RESTRICTS THE OBJECTS OF A SECTION 92, WHICH PROHIBITS LOANS TO A DIRECTOR OR OFFICERS OF A TRUST COMPANY, AND SECTION 93, WHICH RESTRICTS THE BORROWING OF MONEY BY A TRUST COMPANY.
HE ADDED THAT THE ONLY SANCTIONS WHICH WERE CURRENTLY AVAILABLE, INVOLVING THE APPOINTMENT OF AN INSPECTOR TO CARRY OUT AN INVESTIGATION OR SEEKING COURT CONSENT FOR A TRUST COMPANY WOUND UP. WERE CONSIDERED TOO DRACONIAN IN MOST CIRCUMSTANCES.
"THE BILL INTRODUCES MORE PRAGMATIC AND FLEXIBLE FORMS OF SANCTION, NAMELY DEFAULT FINES COMPARABLE TO THOSE PROVIDED FOR IN THE COMPANIES ORDINANCE.
"WE PROPOSE, IN ADDITION, TO TRANSFER CERTAIN FUNCTIONS FROM THE GOVERNOR IN COUNCIL TO THE FINANCIAL SECRETARY WHERE BASICALLY TECHNICAL AND FINANCIAL, RATHER THAN POLICY, CONSIDERATIONS ARE INVOLVED, HE SAID.
THESE FUNCTIONS INCLUDE THE SPECIFICATION UNDER SECTION 4(3) OF INVESTMENTS IN WHICH A COMPANY MAY INVEST TRUST FUNDS, APPROVAL UNDER SECTION 91(1)(B) OF SECURITIES IN OR UPON WHICH A TRUST COMPANY MAY INVEST, AND EXTENSION UNDER SECTION 91(3) OF THE THREE-YEAR LIMIT WITHIN WHICH ANY LAND ACQUIRED BY A TRUST COMPANY MUST BE SOLD,
IT IS ALSO PROPOSED THAT THE POWER UNDER SECTION 95 TO APPOINT INSPECTOR TO INVESTIGATE THE AFFAIRS OF A TRUST COMPANY SHOULD BE TRANSFERRED TO THE FINANCIAL SECRETARY.
AN
"THIS IS IN LINE WITH SIMILAR POWERS WHICH THE FINANCIAL SECRETARY MAY EXERCISE UNDER SECTIONS 142 AND 143 OF THE COMPANIES ORDINANCE IN RESPECT OF THE INVESTIGATION OF COMPANIES GENERALLY, NENDICK SAID.
MR
UPON
THE BILL DEFINES MORE CLEARLY CERTAIN PARTICULAR GROUNDS WHICH AN INSPECTOR MAY BE APPOINTED TO INVESTIGATE THE AFFAIRS OF A TRUST COMPANY, HE SAID.
THE HONG KONG TRUSTEES' ASSOCIATION HAS BEEN SUPPORTS THE PROPOSED AMENDMENTS.
CONSULTED AND
DEBATE ON THE BILL WAS ADJOURNED.
0
/5