CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 5

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the whole with this polaily but considered that

there should not be a flat rate universal minimum

but that it should be related either to the area

to be served or to the magnitude of the bank's

operations or both.

The present Ordinance does

not prescribe the minimum amount of capital, but

Section 353 (1) authorised the Governor in Council

to prescribe the amount of authorised and paid

up capital in the case of new banks coming into

operation after the Ordinance. Section 354 (1)

also provides that such banks must have at least

half of the amount of authorised capital bona

fide paid up in cash. (This follows the India

Office suggestion that it is important to

prescribe a minimum relationship between paid up

subscribed and authorised capital and to prevent

the abuse of a large authorised capital).

3) that local banks should submit annually

in a revised form a statement of assets and

liabilities to the Registrar of Companies, and

that all banks should submit a quarterly statement

to the Treasurer who would publish a summary of

banking business without disclosing names or

positions of banks. Both Sir Percy Ezechiel

and the Treasury agreed to the necessity of the

submission of proper statements but considered

that the publication of annual balance sheets

in standard form was also most desirable as a

public safeguard. Section 375 of the Ordinance

provides that the balance sheet with a copy of

the Auditor's report of every Savings Bank

Land Chunline in are English daily newspape Company shall be published in English and two

Chinese newspapers not less than seven days

before