1974-HKRS28-16-22_Part02 — Page 18

Provision

where fund ts insuffi- cient to meet claims or where claims

closed total Anunt

payable.

Power of Commis sion to

return con* tributions on winding up stock exchange. (Cap. 32)

Inspection of books. etc. of registered persons and others.

90

120, (1) Where the amount at credit in the compensation fund is insufficient to enable the payment of the whole amount of all claims against it which have been allowed or in respect of which orders have been made, then the amount at credit shall, subject to subsection (2), be apportioned between the claimants in such manner as the Council of the Federation or, as the case may be, the Court thinks equitable; and any such claim, so far as it remains unpaid, shall be charged against further receipts of the fund and paid out of the fund when there is again money available in the fund.

(2) Where the aggregate of all claims against the compensa- tion fund which have been allowed, or in respect of which orders of the Court have been made, in relation to the default giving rise to the claims exceeds the total amount which may be paid under this part in respect of the stockbroker or stockbrokers concerned in the default, that total amount shall be apportioned between the claimants in such manner as the Council of the Federation or, as the case may be, the Court thinks equitable: and, on payment out of the fund of that total amount in accordance with that apportionment-

(a) all such claims and any order of the Court relating to

them; and

(b) all other claims which may subsequently arise or be

made in connexion with the default,

shall be absolutely discharged.

121. In the event of a stock exchange being wound up under the Companies Ordinance, the Commission may, in its absolute discretion, after the satisfaction of all outstanding liabilities against the compensation fund, pay to the liquidator of the exchange the whole or any part of the amounts contributed by the exchange under this Part, together with any income accrued in respect thereof; and on any such payment being made those amounts shall form part of the assets of the exchange and be available to the liquidator for distribution in accordance with the Companies Ordinance.

PART XI

INSPECTIONS AND INVESTIGATIONS Inspections

122. (1) For the purpose of ascertaining whether a person who is, or at any time has been, a registered dealer, an exempt dealer, a registered investment adviser, or a registered representa- tive is complying or has complied with the provisions of this

91

Ordinance that are applicable to him in that capacity, and, in the case of a person who is or was a registered person, the conditions" or restrictions (if any) subject to which bis certificate of registration was issued, the Commissioner may inspect and make copies of or take extracts from any-

(4) register or document required by this Ordinance, or, în the case of a person who is or was registered under this Ordinance, by the conditions and restrictions to which the certificate is or has been subject, to be kept by that person; and

(b) banker's books, and the books of any dealer or exempt dealer, in so far as they relate to the business carried on by the first-mentioned person in his capacity as a registered dealer, an exempt dealer, a registered invest- ment adviser, or a registered representative.

(2) For the purpose of enabling the Commissjoner to exercise his powers under subsection (1) the Commissioner may require any person whom he has reason to believe to be in possession of any register, document, or books mentioned in that subsection to produce to bim that register or document or, as the case may be, those books.

(3) The Commissioner shall not, except for the purposes of this Ordinance or in the course of criminal proceedings, make a record of, or disclose to another person, any information that he acquires by reason of the making of an inspection under this section.

(4) If the Commissioner contravenes subsection (3), he shall be guilty of an offence and shall be liable on conviction to a fine of $2,000.

(5) It is not a contravention of subsection (3) to communi- cale information to the holder of a prescribed office.

(6) In this section, "prescribed office" means a public office that is prescribed by regulations for the purposes of this section.

123. (1) The Commissioner may require-

(a) a registered dealer;

(b) an exempt dealer;

(c) an authorized trustee company registered under Part

VIII of the Trustee Ordinance; or

Books, etc. La be produced on demand of Com- missioner.

(Cap. 290