CO129-351 - Public Offices - 1908 — Page 620

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ment of bank-notes, shall first be drawn up by the Bank of China and submitted for the approval of the Board of Finance.

Prior to the promulgation of the Rules above referred to, the bank shall be permitted to issue notes for ordinary commercial purposes,

6. The Bank of China will have, under the control of the Board of Finance, the management of the Public Treasury, and of the financial affairs of the Government, the issue of Government bonds, &c.

7. It shall be the duty of the Bank of China to regulate, on behalf of the Govern- ment, the issue of new coinage. When the market appears to require it, application shall be made by the bank to the Board of Finance, and instructions will then be given to the Mints to furnish the coins so that they may be put into circulation through the medium of the bank.

8. The Bank of China shall not engage in any business other than those specified in the fourth Article.

9. The bank shall not be permitted to hypothecate or buy in its own shares.

10. The Bank of China shall not be permitted to purchase or hold any real estate beyond such land and buildings as are required for the discharge of its business. Should any land come into its possession, either in satisfaction of a debt or as security for a loan, the party to the original transaction and a trustworthy officer deputed by the bank shall, in consultation, estimate the value of the land. The bank shall then be at liberty, if the directorate considers it advisable, to hold the land temporarily, but it must be disposed of within a period of twelve months, or if a forced sale within this period would result in a loss, a further term of six months may, in certain circumstances, be allowed by the Board of Finance. The various parties to the transaction shall be held respon- sible for any loss caused by their default.

11. The Bank of China shall not be permitted to engage in any commercial enter- prises, but shall not be debarred from investing and dealing in the shares of Companies of assured standing.

12. In times of financial stress in any locality, application may be made by the directorate of the Bank of China to the Board of Finance for an advance, with a view to relieving the situation. Such funds shall be employed under the directions of the Board of Finance, and interest shall be paid thereon.

13. The Bank of China's Charter shall be for a term of thirty years, dated from the day on which the general office is opened. On the expiration of this period, if the directorate and a general meeting of the shareholders so decide, application may be made to the Board of Finance for an extension.

14. For the general administration of the head and branch offices of the Bank of China a Governor, Deputy-Governer, and four Directors shall be appointed, the Governor and Deputy-Governor by Imperial Decree on the nomination of the Board of Finance, the Directors by the Board of Finance, after being elected by a general meeting of shareholders.

Three Inspectors shall be elected by a general meeting of shareholders to exercise a general supervision over the affairs of the head and branch offices.

Managers of branch offices shall be appointed by Imperial Decree, on the recom- mendation of the Bank of China and with the sanction of the Board of Finance. Agents, Sub-Managers, and Cashiers shall be selected by the directorate, who shall report their decision to the Board of Finance.

No person shall be eligible for the post of Director unless holding at least 100 shares, or for that of Inspector unless holding 40 shares.

Rules shall be drawn up by the Bank of China, subject to the approval of the Board of Finance, with regard to the powers and responsibilities of the Governor, Deputy Governor, Directors, and Inspectors, the terms of agreement with officers below the rank of Agents and Sub-Managers, and all matters with regard to their bonds of surety, salaries, &c.

15. Two official Auditors shall be appointed by Imperial Decree, on the nomination of the Board of Finance, to supervise the affairs of the bank. They shall from time to time investigate the bank's stock of notes, money in hand, and accounts generally.

The official Auditors shall be entitled to be present and express their views at all general and other meetings of the Bank of China, but shall have no vote.

The Board of Finance may at any time appoint an officer to co-operate with the

official Auditors in investigating the affairs of the Bank of China.

16. The Governor and Deputy Governor and the Managers of branch offices shall hold office for five years, Directors for four years, and Inspectors for three years.

Should a Manager, Director, or Inspector have performed his duties in a satisfactory manner he may be appointed for a further term of office.

The Governor, Deputy Governor, and Managers of branch offices are debarred from filling any other public post of importance during their term of office. Directors and Inspectors are not permitted to act as officers of any other bank or Company.

17. Accurate statements of accounts shall be furnished by the head office, and through it the branch offices, to the Board of Finance.

18. A general report on the business and financial position of the head and branch offices shall be furnished half-yearly to the Board of Finance. A balance-sheet shall also be made out once a year, and after providing for salaries, establishment charges, and interest at the rate of 6 per cent. per annum, at least 10 per cent, of the remainder shall be put to reserve. This reserve shall only be employed for the purpose of making up deficiencies in capital or in paying the fixed rate of interest on the shares.

19. A general meeting of the shareholders shall be held annually at the head office of the bank in Peking, but only those shareholders will be admitted whose names are on the register at least one month before the date of the meeting, and who have produced their share certificates and entered their names at the offices of the bank within three days before the meeting. Notice of a general meeting shall be sent to shareholders by post, and published in the newspapers a month before the event.

Extraordinary general meetings for the discussion of matters of importance affecting the bank may be called on a requisition signed by all the Inspectors, or by at least fifty shareholders.

20. Detailed Regulations, founded on these, shall be drawn up by the Bank of China, and when the sanction of the Board of Finance shall have been obtained thereto, no alterations may subsequently be introduced, except by Resolution passed by a general meeting of shareholders and sanctioned by the Board of Finance.

21. Should it be made evident to the Board of Finance, the directorate of the bank, and a general meeting of the shareholders that more than one-half of the capital has been lost, the business of the bank shall be at once suspended and an Administrator appointed. When all accounts have been settled, the residue of the capital shall be divided pro rate among the shareholders, and the Company shall be wound up.

22. Should the Bank of China suffer any injury to its business through the disregard of these Regulations by a Governor, Deputy Governor, or the Manager of a branch office, or through any neglect of duty on their part, the Board of Finance shall, in minor cases, inflict a fine or other punishment on the officer responsible, and in the case of more serious delinquencies shall memorialize the Throne for bis removal. He shall also be held liable for any loss occasioned by his default.

An officer may also be removed from office at the request of two-thirds of the body of shareholders, submitted through the Board of Finance.

23. These Regulations shall come into force three months after the receipt of Imperial sanction.

24. Modifications of these Regulations may hereafter be introduced through the medium of a Memorial.

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