of our shareholders is by law unlimited
W
:n regards its note issue although
strictly limited as regards its ordinary
liabilities, but with the two Chartered
Banks referred to the liability of the
shareholder is limited to once the amount of the shares and the note
special debt for with
issue is not a
this bank) but pants equally for divi - dad with deposits, drafts, acceptances and other liabilities.
at is evident that without a
deposit of security
uitely
our notes are infi= more secured than the notes of the Banks referred to and therefore it is manifestly unreasonable that in addition to the unlimited liability of our shareholders we should be asked to deposit security to put
no on the same (!) footing as the limited liability
the hoo Charkred Banks.
It is also as well to remember.
that the limit of
our issue is only
$450,000
C
67
• 450,000 which by the Ordinance of March last cannot be increased without the Government's permission.
To clearly exemplify the case of
the Chartered Banks we would refer to the failure of the old Qriental Bank Corporation which was incorporated by charter with similar provisions and privileges to those
enjoyed by the two Chartered Banks in Stong Hong. The chareholders (£25 per share) had to pay up a further £20 per share and the holders of notes ranked equally with depositors and other creditors and
140
>
only participated in the same dividende they did to the extent of 19/9 in the pound. In the case of our Bank as
the law
appear to stand at present the shareholders are collectively and indivi. dually liable to their last sixpence until the note issue should be paid in full while depositor etc., would
only rank in the ordinary way
against
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