5
(3) The Corporation shall not enter into contracts of insurance against risks that are normally insured with commercial insurers.
(4) The Corporation shall pursue a policy directed towards securing revenue sufficient to meet all its expenditure properly charge- able to revenus account.
12. (1) The policy pursued by the Corporation with respect to any Approval of of the following matters, namely—
(a) the classes of contracts of insurance into which the Corporation certain
will enter;
policy in respect of
rbatters.
(b) the nature and extent of the risks that may be covered under
contracts of insurance entered into by the Corporation;
Advisory
Board estab- fishment.
First
Schedule.
Polley.
PART III.
Advisory Board.
10. (1) There is bereby established an Advisory Board to advise the Corporation in the conduct of its business under this Ordinance.
(2) The Advisory Board shall consist of-
(a) the Director of Commerce and Industry or his representative; (b) the Executive Director, Hong Kong Trade Development
Council, or his representative; and
(c) mot more than ten other members.
(3) The members of the Advisory Board, other than the Director of Commerce and Industry and the Executive Director, Hong Kong Trade Development Council-
(a) shall be appointed by the Governor for a term not exceeding
three years at a time; and
(6) shall upon appointment take an oath before a justice of the
peace in the form prescribed in the First Schedule.
(4) If a member of the Advisory Board has any pecuniary interest. direct or indirect, in any contract or proposed contract or other matter, and is present at a meeting of the Board at which the contract or other matter is the subject of consideration, he shall, as soon as practicable after the commencement of the meeting of the Board, disclose to the Board the fact and the nature of his interest.
(5) The Corporation shall not be bound by the advice of the Advisory Board.
PART IV.
POLICY OF CORPORATION.
11. The Corporation shall keep the Financial Secretary informed of the decisions of the Corporation insofar as they relate to matters of policy in relation to the conduct of its business.
(c) the undertaking of liabilities in relation to trade with particular
countries;
(d) the organization of the finances of the Corporation and the determination of the use to which any surpluses acquired by the Corporation are to be put; and
(e) the determination of the total amount of the capital and reserves required by the Corporation taking into account the sums at risk under contracts of insurance entered into by the Corporation.
shall be subject to the approval of the Financial Secretary:
Provided that nothing in this subsection shall prevent the Corpora- tion, when it considers an immediate decision is required, from pursuing a policy which has not been approved by the Financial Secretary if it seeks his approval of such policy at the first available opportunity.
(2) Nothing in subsection (1) shall be construed as requiring the approval of the Financial Secretary to the entering by the Corporation into particular contract of insurance or as empowering the Financial Secretary to determine that the Corporation shall or shall not enter into a particular contract of insurance, but the Corporation shall not enter into a particular contract of insurance unless the contract is in accordance with policy approved by the Financial Secretary,
(3) In this section-
"surplus" means those balances which the Corporation has in band at the end of any financial year and which are not required to meel— (a) payments at that time due to be made as a result of claims under examination in respect of contracts of insurance entered into by the Corporation;
(b) payments due to be made in respect of the operating expenses
of the Corporation;
(c) provision for expenditure on capital items, on replacements of fixed assets and on amortization payments incurred by the Corporation:
(d) such sums as in the opinion of the Corporation may be required to cover the unexpired risks on contracts of insurance entered into by the Corporation; and
(e) any other liabilities.
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