1976-HKRS28-16-24_Part04 — Page 10

Exclud Company to make deposita

In respect at shareholder.

Investmení at

maddy la compellņa fund.

Repayment of deposits La cerrado case.

ReplenbbmcOI

git compet don land in

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(2) The Commission shall appoint an auditor to audit the compensa- tion fund.

(3) The auditor so appointed shall annually audit the accounts of the compensation fund and shall audit, and prepare an auditor's report in respect of, each revenue and expenditure Account and balance sheel pre- pared under subsection (1) and shall submit the report to the Commission,

(4) Not later than 4 months after the end of each financial year the Commission shall cause a copy of the audited revenue and expenditure account and balance sheet to be sent to the Exchange Company together with the auditor's report

83. (1) The Exchange Company shall deposit and keep deposited with the Commission in respect of each shareholder-

(a) an amount of $25,000 in cash; and

(6) a bank guarantee in the amount of $25,000 in a form acceptable to the Commission, or a further amount of $25,000 in caul.

(2) Any amount due from the Exchange Company under this section may be sued for and recovered by the Commission as a debt in a court.

83. 0) The Commission may invest any money which forms part of the compensation fund and is not immediately required for any other purposes" provided for by this Part-

(a) on fixed deposit with a licensed bank; Or

(b) in securities in which trustees are authorized by law to invest

trust funds.

(2) As soon as practicable after the end of each financial year, the Commission shall notify the Exchange Company-

(a) the rate of interest to be paid for that financial year in respect

of cach deposit paid in cash under section 82(1XÃ); and

(5) the amount to be charged for management expenses incurred, în the administration of the compensation fund, and the Commission shall pay the Exchange Company the interest accrued after deduct- ing the management expenses.

(3) A fixed deposit receipt or other document evidencing the invest- ment of money under subsection (1) may be kept in the office of the Commission or deposited for safe keeping with a licensed bank.

#4 Where the Exchange Company has made a deposit under soć- tion 32 in respect of a shareholder and the shareholder ceases to be a shareholder, the Commission shall, unless the deposit or any part thereof is required to satisfy any claim or liability arising before the date on which the shareholder ceases to be a shareholder, within 6 months after such date refund to the Exchange Company the deposit paid in cash or such part thereof as is not so fequired and return` to it the bank guarantee.

85. (1) Subject to subsections (2) and (3), if at any time resort has to be made to any deposit paid in cash under section 82(1)(a) in order to satisfy any claim against the compensation fund in relation to a share- holder, the Exchange Company shall, on being required to do so by the Commission, replenish the compensation fund by depositing with the Com- mission an amount that is equal to that paid in connexion with the satisfaction of the claim, including any legal and other expenses incurred in relation to the claim by recourse to the bank guarantee deposited under section 82(1)(D).

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(2) The maximum liability of the Exchange Company to the com- pensation fund shall not in any event exceed the cash payment of $50,000 in respect of each shareholder.

(3) The Commission shall not require the Exchange Company to make a deposit under subsection (1) unless it has first exhausted all relevant rights of action and other legal remedies, conferred by section 95, against the shareholder in relation to whom the claim arose.

(4) Any amount due from the Exchange Company under this section may be sued for and recovered by the Commission as a debt in a court.

86. Subject to this Part, there shall be paid out of the compensation Payment our fund as required and in the following order-

of the compensatio

(a) all legal and other expenses incurred in investigating or defeading fu

claims made under this Part or incurred in relation to the com- pensation fund or in the exercise by the Exchange Company or the Commission of the rights, powers and authority vested în it by this Part in relation to the compensation fund;

(b) the expenses incurred in the administration of the compensation

fund:

(c) the amounts of all clairus, including costs, allowed by the Ex- change Company or established against the Exchange Company under this Part; and

(a) all other amounts payable out of the compensation fund in

sccordance with this Part.

57. (1) Subject to subsection (6), where a person sustains pecuniary Clima loss because of a default committed in the course of or in connexion with * the the commodity futures trading business of a shareholder by the shareholder

Camperdon fund. or by any director, partner or employes, as the case may be, of the share- balder in respect of any money, futures contract or other property-

(a) which was entrusted to ar received by the shareholder or any director, partner or employee of the shareholder, for or on behalf of that person; and

(b) to which that person is entitled or in which be bas a beneficial

interest (whether existing or contingent),

he shall be entitled, subject to this Part, to claim compensation from the compensation fund for such pecuniary loss.

(2) Subsection (1) does not entitle any shareholder to make a claim against the compensation fund.

(3) Except as otherwise provided in this Part, the total amount of compensation that may be paid to any person under subsection (1) shall not in any event exceed $1,000,000 in respect of each shareholder; but for the purposes of this subsection any amount paid from the compensation fund shall, to the extent that the compensation fund is subsequently reimbursed in respect of any such payment (not being a deposit made under section 85), be disregarded.

(4) Subject to this Part, the amount of compensation which any person is cutitled to claim from the compensation fund is the amount of the actual pecuniary loss suffered by bim (including the reasonable costs of and dis- bursements incidental to the making and proving of his claim) less any amount of value of money or other benefits received or receivable by him in reduction of the loss from any source other than the compensation fund.

(5) In addition to any compensation payable under this Part, lnterest shall be payable out of the compensation fund on the amount of the