CO129-581-9 Trustee Amendment Ordinance 1939 21-1-1939 - 31-5-1939 — Page 8

ATTORNEY GENERAL'S CHAMBERS.

Hong Kong,....26th May,..

.19 39.

REPORT ON ORDINANCE No.....17.

.......of 1939.

1. I have examined the accompanying Ordinance intituled an

Ordinance to amend the Trustee Ordinance, 1934.

2. A print of the memorandum of Objects and Reasons

of the Bill for this Ordinance is attached.

3.

I am of opinion that this Ordinance is not contrary to the Governor's instructions and that it is one to which His Excellency may properly assent in the name of His Majesty and on His behalf.

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Attorney General.

8

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Objects and Reasons.

1. Certain banking corporations carrying on business in this Colony and authorized by their constitution to undertake trust business are, unless appointed to be trustees in a particular case by the Court, precluded from doing such busi- ness by sections 77 and 82 of the Trustee Ordinance, No. 18 of 1934, which limit the objects of a Trust Company to those set out in section 82.

2. Clause 2 of this Bill, by adding three new sections 106A, 106B and 106C to the principal Ordinance, enables any corporation lawfully carrying on banking business in this Colony and having the prescribed capital qualification, to be registered, with the consent of the Governor in Council, as a Trust Company notwithstanding that its objects are not restricted to those set out in section 82, and exempts, except in the case of section 82 (1) (1), such a corporation from the provisions of sections 77, 81, 82, 92, 93, 94, 97 and 101 in Part VIII of the principal Ordinance, which are appropriate only to companies whose objects are so restricted.

3. In addition to the capital qualification ($4,000,000 issued and $1,600,000 paid-up capital), which is based upon a similar qualification (£250,000 and £100,000 respectively) in the Public Trustee Rules in England, the Governor in Council is required, before consenting to registration, to satisfy himself that the extent and nature of the corporation's business in the Colony is sufficient to justify such special registration.

4. New section 106B limits the powers of an inspector appointed under section 96 of the principal Ordinance to the investigation of the trust business of a corporation registered as a Trust Company under new section 106A.

5. New section 106C provides for the removal from the register of Trust Companies of any corporation registered under new section 106A if the corporation ceases to be qualified for registration as a Trust Company or if on the report of an inspector appointed under section 96 it appears that the corporation has committed a breach of trust.

April, 1939.

C. G. ALABASTER,

Attorney General.

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2643-150) Wt. 16318-94 15,000 7/38 T.S. 695 (*3070-150)

Wt. 26563-2 20,000 10/38 T.S. 695

C. O.

18r. Boys 19/3

Mr Blaster Corrall 20

Mr. Clauson 20/3

Mr. A. J. Dawe.

Sir H. Moore.

Sir G. Tomlinson.

Sir J. Shuckburgh.

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Secretary of State.

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I presume that this

dow not

mean that

a bank acting as trustee will be able to change any fees that it tikes. If there

danger of this,

is any

I myjust that it

FURTHER ACTION.

L

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Thave to. to refer to your deaf.

Dec:

Tro.

938 enclosing the draft of

Bill bramend the Truste Ordinanca 193x

ん

and to date had I observe that section lob A

of the

Trustes Ordinance as proposed to be amended

by Clause 2 of the draft Ball provides that Section

82 of that

in the case

Ordinance shall have no application

of a banking corporation carrying on

bust business) Shone ascadingly 6 suggest that

uneess the pool is thousas porrain for t

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might

b

е

be describes to except bation 82(1) *)

from the provision. Support

o consideration

of the abra porn't I approve the interduction

above

its the Legislatie Comil

of the Bill wits the

(SedhanaLOOLM

COLM MacDONALDPage 11