CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 29

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licence should only be required for the

establishment of new banks.

Subsections (2) and (2) of this

section purport to control the activities of

banks which set up new branches elsewhere

than in the Colony.

The Hong Kong

Legislature has no power to enact laws

having application outside Hong Kong,

and the provisions of these two subsections

which relate to branches established

elsewhere than in the Colony must be deleted.

I agree entirely with the criticisms

previously made of subsection (3) of Section 353,

and we can bring to their notice Section 5(1)

of the Palestine Ordinance 27 of 1937, though,

of course, these provisions do not deal with

the same matter.

New Section 355(2). I do not quite see

why members of the Advisory Committee should

be absolutely protected from all liability

in respect of their statements, especially

since, as understand it, this Committee

will be composed partly of ordinary bankers.

I suggest the protection should be afforded

only for statements made in good faith.

*

With regard to the suggestion that it should

be provided that the statements should be

treated as confidential, I am not clear

that this is necessary since the Ordinance

does not provide, so far as I can see, for

making statements to the Advisory Committee.

It is the Advisory Committee which gives advice

to other persons, including the examiner,

and the examiner by Section 356(6) is to