Frovilons appleble to malverbera
to the
(Op. 32)
CIHLAJ regaireboeni.
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(3) The decision of the Commission under subsection (2) shall be final.
24. (1) Within 6 months after the date of commencement of this Ordinance, each subscriber to the memorandum of the Exchange Company shall provide proof to the satisfaction of the Commission that he-
(a) was, on the date upon which he subscribed to the memorandum,
a member or associale member of an existing exchange; (b) is not disqualified under section 13 from being a member or
associate member of the Exchange Company; and
(e) bas deposited with the Exchange Company the sum specified under section 16(1)@) or (b) in respect of his membership or associate membership, as the case may be.
(2) For the purposes of section 13(1)(g) in its application to a sub- scriber under subsection (1)(b), section 15 shall apply to such subscriber—–— (a) as if he were, for the purposes of subsection (1), making an application for membership or associate membership of the Exchange Company; and
(b) as if for the reference in section 1501) to the transitional com- mittee or the Committee and to the Commissioner there wCIC substituted a reference to the Commission.
(3) The Commission shall, in writing, notify each subscriber either- (a) that it is satisfied that he complies with the requirements specifled
in subsection (1) or
(4) that it is not so satisfied.
and the decision of the Commission under this subsection in respect of any subscriber shall be final.
(4) Where the Commission notifies a subscriber in accordance with subsection (3)6), the subscriber shall, with effect from the date of service upon him of such notification, cease to be a member or associate member of the Exchange Company, as the case may be, and, notwithstanding anything in the Companies Ordinance or in the constitution of the Exchange Company, his shareholding in the Exchange Company shall, for the purposes of this subsection, be deemed never to have been issued. (5) The Exchange Company shall, in respect of any subscriber to whom subsection (4) applies-
(a) refund to such subscriber any sum deposited by him under seĆ- tion 16(1)(a) or (b) or pursuant to the articles of association in payment of his shareholding; and
(b) take such steps (including any amendment of its records) as are
necessary to give effect to such subsection.
25. (1) A member or associate member of the Exchange Company, being an individual, shall provide and at all times maintain in his stock- broking business a net espiul of not less than $1,000,000 in respect of each membership or associate membership held by him.
(2) An associate member of the Exchange Company, being a corpora. tion or a firm, shall provide and at all times maintain in its stockbroking business a net capital of not less than $1,000,000 in respect of each assocjale membership beld by it.
(3) The Legislative Council may, by resolution, vary the amounts specified in subsections (1) and (2).
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(4) 1f any member or associate member to whom subsection (1) or (2) applies fails to comply with such subsection, the Exchange Company may, and shall it so directed in writing by the Commissioner, suspend any membership or associate membership to which the failure relates until such time as-
(a) the Exchange Company is satisfied that the member or associate member again complies with the requirements of the subsec tion; or
(b) the Coromissioner revokes the direction,
as the caso may be.
(5) For the purposes of this section-
"aet capital" means the excess of approved assets over ranking liabilities; "approved assets" and "ranking liabilities" means such assels and liabilities of the member or associate member as are specified to be approved assets and ranking liabilities for the purposes of this section by the Commission by notice in the Gazettei
"stockbroking business" mca05-
(a) the business of dealing in securities listed or quoted on the Unified Exchange or a foreign stock exchange as a member or associate member of the Exchange Company;
(6) the administration of any trust, or the carrying on of the business of any company, in conjunction with, or as an adjunct to. a business specified in paragraph (2); and
(c) the retention of securities whether for safe keeping or otherwise, and whether for specific consideration or otherwise, in conjung- tion with or as an adjunel to a business specified in paragraph (2).
24 (1) No person-
Approved and Degriabraliom
(a) being a member or associate member of the Exchange Com- of deeds of
pany; or
(5) being a partner of a firm that is an associate member,
shall without the prior approval, in writing, of the Exchange Company enter into any deed of trust or other arrangement concerning the financing or pledging, or use that may be made by any other person, of any membership or associate membership of the Exchange Company held by such member or associate member.
(2) Where a person referred to in subsection (1)α) or (b), with the approval of the Exchange Company, enters into any deed of trust Dr other arrangement referred to in that subsection, he shall, within 1 month of so doing, lodge a copy of such deed of trust or of any instrument containing the details of any such arrangement, as the case may be, with both the Committee and the Commissioner, in such form and manner as the Committee and the Commissioner, in each case, may require.
(3) The Committee shall register, in a book kept by it for the purpose, any deed of trust or instrument lodged under subsection (2),
(4) Any person who contravenes subsection (1) ar (2) commits an offence and is liable to a fine of $20,000 and to imprisonment for 3 months and, where the offence is a continuing one, to a further fine of $100 for each day on which the offence continues.
(5) Except as provided by this section or any other law, all matters relating to the entering into by members and associate members of deeds of trust or other arrangements referred to in this section shall be governed by the articles of association of the Exchange Company.
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