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

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business.

The India Office considered that as

far as India was concerned it was recognized

as hopeless to try to define banking or to

restrict the use of the word "banking", and

proposed that a Bankers' Association should be

established.

in section 2)

The present Ordinance provides

that no company shall be registered by a name

which contains the word "bank" or "banking"

without the consent of the Governor.

6) that banks should not mention in their

letter paper their authorised capital without

Amelut Of mentioning the paid up capital.

This is pro-

vided for by Sections 3 and 5 of the present

Ordinance.

Section 354 (1) follows the India

Office suggestion as to the amount of authorised

apitał which must be bona fide paid up in eash

Section 363, that when a company con-

ducts any other business in addition to savings

bank business its accounts relating to the

savings bank business shall be kept in separate

and distinct books of account, is to provide

against the practice, mentioned in (1) on 53671/35, of merging the assets of savings banks

in the general assets of the parent institution,

which is apparently a universal practice in

Hong Kong and is followed even by the Hong Kong

and Shanghai Bank.

It will be seen that the Ordinance

follows the result of the discussions on banking

in Palestine fairly closely, though it has added

to the proposals considerably, particularly in the

regulation for the deposit of securities with

Colonial