CO129-561-6 Companies Amendment Ordinance draft bill- correspondence 18-1-1937 - 6-7-1938 — Page 60

EXTRACT.

CONFIDENTIAL

Dear Young,

BANK OF ENGLAND.

13th October, 1937.

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Section 19 (2) (g) Should not the words or any

derivatives or foreign equivalents thereof" be added?

I assume that the effect of amending Section 19 will be to make all existing banking companies apply for a licence.

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Section 56A Would it not be better that subscribed

capital also be included and that after the word "therein" there be inserted the words "with equal prominence".

Section 339A The Committee evidently thought this would be a most useful provision in the circumstances of Hongkong. Even so I should have thought that persons fined under this section should have some right of appeal.

Section 353 The minimum amount of capital required by a

banking company is left to the discretion of the Governor in Council. I wonder whether some general direction ought not to be included as to the desirable minimum.

but

Wide powers are given to the Governor in Council. He must, I agree, take the responsibility: would it not be wise to provide that before the Governor (3) cancels a licence he should consult the Examiner of banks and his advisory council and also that he should give injured parties a hearing if they so desire?

Section 355 This section, as drafted, does not seem to me to provide for the compulsory appointment of an Advisory Committee. Ought it not to read somewhat as follows:-

"The Governor shall appoint a Committee for the purpo

The of advising, etc., etc., banking company. Governor may nominate

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Section 356 (1) I do not think it will be of use to have an,

examiner of banks unless he is above all a banker of experience and only an officer of the Hongkong Government

His qualifications need by reason of his appointment.

not be stated in the Act but they must be remembered.

Section 358 Would it be an improvement to substitute the

word "small" for "minor" and to substitute "other deposits are also accepted" for "deposits of larger amount be also accepted".

Section 362 I suppose there is a good local reason for

this section.

Section 364. I am not quite clear whether this section means that deposits cannot be increased by more than $200 a month net or whether it means that deposits in any one month, irrespective of withdrawals, must not be

I should assume that the former greater than 200.

I am also not clear whether the meaning is intended. intention of this Section is that sums of one dollar or multiples thereof, up to a maximum of $200, may be accepted at any one time.

N.E. Young, Esq., M.C.

Generally

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