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companies and also that of future Hongkong fire and marine
insurance companies. If it should be decided to legislate
on this matter by Order in Council an amending Ordinance
probably be necessary here, but the matter was considered too
urgent to justify the delay which the discussion of these
points will necessarily involve.
will
11.
Section 5 requires that at least one half in value of
the deposit shall consist of fixed deposits in approved banks
or of securities of the kinds specified in the section. The
Chamber of Commerce originally asked that the deposit should
be wholly in cash. The local Chinese companies, on the
other hand, were anxious that leasehold property might be
accepted as the whole deposit. This section and the Deposit
Regulations in the First Schedule form a compromise between
these two viewa.
12.
Section 6 provides for the filing of accounts, balance
sheets and reports, and for a special audit in case of
necessity.
It was not thought necessary to exclude fire
and marine insurance companies from the operation of B.109
of the Companies Ordinance, 1911.
Sections 7 to 10 do not seem to call for any special
13.
comment.
14.
Section 11 deals with the subject of exemptions.
principal points on the section are as follows; -
The
(a)
The United Kingdom deposit of £20,000 is a ground of total exemption, even if the company carries on
only life insurance business in the United Kingdom.
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