CO129-567-10 Companies Amendment Ordinance- draft bill 15-9-1938 - 28-9-1938 — Page 260

320

Substitution

of new

section in place of

section 4 of the principal Ordinance.

Provisions relating to

banks carrying

on business

at the commence-

ment of this

Ordinance.

(4) No foreign company within the meaning of the Companies Ordinance, which has as its object or one of its objects the carrying on of banking business shall be registered unless it is proved to the satisfaction of the High Commissioner that it has a paid-up capital of a sum which in his opinion is equivalent to an amount being not less than one hundred thousand pounds.

(5) The High Commissioner may in his absolute discretion vary the requirements of sub-sections (2), (3) or (4) of this section in respect of any company when he considers it to be in the interests of the public so to do:

Provided that where the High Commissioner has reduced the requirements as to capital prescribed in sub-sections (2), (3) or (4) hereof, the company in favour of which such variation has been made shall not open a branch office except under special licence of the High Commissioner."'

3. Section 4 of the principal Ordinance shall be deleted and the following section substituted therefor :--

4.-(1) Every company carrying on banking business in Pal- estine shall--

(a) exhibit throughout the year in a conspicuous position in every office and branch of the company in Palestine a copy of its last audited balance sheet;

(b) on or about the date of the presentation of such bal- ance sheet to the shareholders in general meeting, cause a copy thereof to be published in a daily newspaper cir- culating in Palestine.

(2) Any company to which this section shall apply which fails to comply with the requirements thereof shall be liable on convic- tion to a fine not exceeding one hundred pounds."

4.-(1) Any company lawfully carrying on banking business in Palestine at the date of this Ordinance. which has not on that date a subscribed capital of fifty thousand pounds, of which not less than twenty-five thousand pounds has been paid-up in cash shall

-

(a) within a period of nine months from such date, bring its subscribed capital up to a sum not less than twenty thou- sand pounds of which not less than ten thousand pounds shall have been paid-up in cash, and

(b) within a period of two years from the date of this Ordin- ance, bring its subscribed capital up to a sum not less than fifty thousand pounds of which not less than twenty-five thousand pounds shall have been paid-up in cash.

(2) The provisions of section 5 of this Ordinance shall apply to any company not complying with the requirements of this section.

5. (1) The High Commissioner may, after consulting with the Advisory Committee and the Examiner of Banks, and if he con- siders it to be in the public interest so to do, order any company-

(a) to delete from the name under which it is carrying on business, within a period of seven days from the date of such order, the word 'bank' or any of its derivatives, or any other word or words forming part of its name;

(b) to refrain from receiving from the public money with-

drawable by cheque or order:

Provided that before such order is made, the High Commis- sioner shall give such company notice in writing of his intention so to do and shall afford it an opportunity of being heard in op- position thereto.

(2) Any company failing to comply with an order made under this section shall be liable to a fine not exceeding ten pounds for every day during which default continues.

Provisiona relating to banks which do not fulfil requirements regarding minimum

6.-(1) No person or body of persons, whether incorporated or unincorporated, other than a company authorised to carry on bank- ing business within the meaning of the principal Ordinance by virtue of section 3 thereof as enacted in section 2 of this Ordin- ance shall, without the consent of the High Commissioner, use or continue to use the word 'bank' or any of its derivatives in the name under which he is carrying on business.

capital, etc.

(2) Any person or body of persons whether incorporated or un- incorporated, other than a company authorised by virtue of sec- tion 3 of the principal Ordinance as enacted in section 2 of this Ordinance to carry on banking business within the meaning of this Ordinance, who is using the word 'bank' or any of its derivatives in the name under which he is carrying on business shall within one calendar month from the date of enactment of this Ordinance. apply to the High Commissioner for authorisation so to do, or within that period, delete such word from the title under which he is carrying on business.

(3) The High Commissioner may, in his absolute discretion, either grant or refuse such application.

Restriction in Use of

(4) Where such application has been refused, the applicant shall within a period of seven days from the date of such refusal, delete the word 'bank' or any of its derivatives from the title under which he is carrying on business.

title 'bank'.

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