XN000022-1981-05-13 — Page 4

WEDNESDAY, MAY 13, 1981

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IN SPECIAL OPERATIONS IN KOWLOON THIS YEAR, 480 VEHICLES WERE CHECKED, 13 VEHICLES DETAINED ON SUSPICION OF BEING MODIFIED FOR RACING AND 7 DRIVERS ARRESTED.

ON HONG KONG ISLAND, 10 MOTORCYCLISTS HAVE BEEN SUMMONED THIS YEAR,

+POLICE ARE AWARE THAT AREAS REMAIN IN WHICH ILLEGAL ROAD RACING CONTINUES, AND WILL CONTINUE TO COMBAT THIS,+ HE SAID.

DEPOSIT-TAKING COMPANIES (AMENDMENT) (NO. 3) BILL

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THE MAIN PURPOSE OF DEPOSIT-TAKING COMPANIES (AMENDMENT) (NO. 3) BILL 1981 IS TO IMPROVE THE QUALITY OF THE PRUDENTIAL SUPERVISION APPLIED TO DEPOSIT-TAKING COMPANIES IN HONG KONG, THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE, SAID AT THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

IN MOVING THE SECOND READING OF THE BILL, SIR PHILIP SAID THAT, LIKE THE BANK ING (AMENDMENT) (NO. 2) BILL, IT ALSO INCORPORATES A NUMBER OF MINOR AMENDMENTS TO THE PRINCIPAL ORDINANCE. INCLUDING REVISIONS TO THE PENALTIES PRESCRIBED FOR VARIOUS OFFENCES.

SIR PHILIP SAID +CLAUSE 5 OF THE BILL SEEKS TO INCREASE FROM $2.5 MILLION TO $10 MILLION THE MINIMUM PAID-UP SHARE CAPITAL REQUIRED BY A COMPANY APPLYING TO BE REGISTERED AS A DEPOSIT-TAK ING COMPANY, AND IT REMOVES THE PRESENT REQUIREMENT FOR A MINIMUM ISSUED CAPITAL OF $5 MILLION, SINCE THIS REQUIREMENT IS NO LONGER RELEVANT.

THE THRUST OF THE ORDINANCE HAS NOW CHANGED TOWARDS THE PRUDENTIAL SUPERVISION OF THOSE COMPANIES ON THE REGISTER AND SO THE MINIMUM PAID-UP CAPITAL REQUIREMENT CLEARLY NEEDS TO BE INCREASED,+ HE SAID.

+CLAUSE 6 SEEKS TO RAISE THE MINIMUM PAID-UP CAPITAL OF

A COMPANY ALREADY ON THE REGISTER- AND CLAUSE 7 PROVIDES A TWO-YEAR TRANSITIONAL PERIOD, WHICH CAN BE EXTENDED BY THE GOVERNOR-IN- COUNCIL IN INDIVIDUAL CASES, DURING WHICH THOSE 171 DEPOSIT-TAKING COMPANIES REGISTERED AT THE COMMENCEMENT OF THIS ORDINANCE, AND WHICH HAVE PAID-UP SHARE CAPITAL OF LESS THAN $10 MILLION, CAN ATTAIN THE NEW MINIMUM LEVEL.

+OF THOSE 171 COMPANIES, 23 COMPANIES COULD MEET THE NEW REQUIREMENT BY CAPITALISING PART OR ALL OF THE IR EXISTING RESERVES.

/+CLAUSK 1b